Sweden Service Sector Growth Eases In October

(RTTNews) - Sweden's services activity growth remained strong in October despite easing since September, survey results from Swedbank and the logistics association Silf showed on Wednesday.

The purchasing managers' index, or PMI, for the services sector dropped to 55.4 in October from 57.9 in September. However, a score above 50 suggests expansion in the sector.

"Lower interest rates from the Riksbank and a more expansionary fiscal policy may in the long term lift the services sector and may already be reflected in the business plans of service companies, which continued to rise in October," Swedbank analyst Jorgen Kennemar said.

Among components, the business volume sub-index accounted for the largest negative contribution to the decline in PMI services, followed by employment and delivery times, while the order backlog index rose to the next highest level this year.

On the price front, the index for raw and intermediate goods climbed to 55.7 in October from 53.9 in September. Moreover, this indicates the highest price pressure faced by the services economy since last spring.

The composite output index stood at 55.3 versus 57.2 in September, signaling an overall strong expansion in the Swedish business sector.