Service sector pressure rises as Swedish PMI climbs to 55.8 in August

"The service sector strengthened in August with a clear increase in business volume. However, service companies are still holding off on hiring new employees and perhaps we need a longer period of stronger service sector activity before employment picks up," says Jörgen Kennemar, who is responsible for the analysis of the Purchasing Managers' Index, in a press release.

The Purchasing Managers' Index is a business cycle indicator for the Swedish economy. An index reading above 50 indicates growth, while a reading below 50 indicates a decline.