Swedish Service Sector Contracts In March

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

The purchasing managers' index, or PMI, for the services sector dropped to 49.4 in March from 50.5 in February. Any reading below 50 suggests contraction in the sector.

Among components, business volume and new orders accounted for the largest declines, and the employment index fell for the eighth successive month.

"Companies are delaying hiring when the economic recovery does not gain momentum, which is a bleak signal for the Swedish labor market," Swedbank analyst Jorgen Kennemar said.

Price pressures continued to rise in the service sector, as the corresponding index for the raw and input prices remained above the historical average of 58.1.

The composite output index declined to 50.6 in March from 51.3 in February, indicating that the Swedish business sector is slow and driven by industry, while the service sector is waning, the survey said.