Swedish Service Sector Recovery Continues In July

(RTTNews) - Sweden's service sector activity expanded for the second straight month in July, survey results from Swedbank and the logistics association Silf showed on Monday.

The purchasing managers' index, or PMI, for the services sector rose to 53.8 in July from 52.2 in June.

A reading above 50 indicates expansion in the sector, while any score below 50 suggests contraction.

"The index has been in growth zone six for the first seven months of the year but does not yet show any acceleration in the recovery, which likely requires a stronger global economy and lower interest rates than we see today," Swedbank analyst Jorgen Kennemar said.

Among components, the volume of business index accounted for the largest positive contribution to the increase in PMI, followed by order intake, employment, and delivery times.

On the price front, input price pressures intensified somewhat in July, with the index for raw and input goods prices rising to 56.8 from 54.5 in June. However, the price increase pressure in service companies was lower compared to the beginning of the year, despite weak currency.

The composite output index rose marginally to 52.5 in July from 52.4 in the prior month, indicating a modest improvement in the growth of the Swedish private sector economy.