Swedish Services Activity Recovers In June

(RTTNews) - Sweden's service sector activity expanded for the first time in three months in June, survey results from Swedbank and the logistics association Silf showed on Wednesday.

The purchasing managers' index, or PMI, for the services sector rose to 51.8 in June from 49.8 in May.

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

"But it is still a slow and tentative service economy, which has not yet really established itself in the growth zone," Swedbank analyst Jorgen Kennemar said.

The delivery time index accounted for the largest positive contribution to the overall growth, followed by order intake and employment, while business volume showed a marginal decline.

On the price front, input price pressures eased further, with the index for raw and input goods prices falling to 53.7 in June from 54.2 in May. The rate of inflation slowed to a 1-year low, linked to the combined effect of a sluggish service economy and the companies' lower price increases.

The composite output index climbed to 52.3 in June from 51.0 in the prior month, indicating that the business economy has improved since last year.