Swedish Service Sector Contracts In September

(RTTNews) - Sweden's services activity deteriorated for the first time in four months in September, survey results from Swedbank and the logistics association Silf showed on Thursday.

The purchasing managers' index, or PMI, for the services sector dropped to 49.1 in September from 52.4 in August.

Any reading below 50 indicates contraction, while a score above 50 suggests expansion in the sector.

"It is a surprisingly large and broad decline, even if a single monthly outcome should not be overinterpreted," Swedbank analyst Jorgen Kennemar said.

"A sluggish global economy and the uncertain geopolitical situation may have had a dampening effect on service companies."

Among components, order intake accounted for the largest negative contribution to the decline in services PMI, followed by business volume, delivery times, and employment.

On the price front, cost pressures eased further in September, with the index for commodity and input prices falling in September to 49.1 from 53.5 in August.

The composite output index dropped to 49.7 in September from 52.5 in August, indicating a slight contraction in the Swedish private sector.