The Purchasing Managers' Index for the service sector fell to 49.4 in March, according to Swedbank and Silf. This can be compared to a revised index level of 50.5 in February.
"The recovery in the service sector came to a halt in March. Moreover, companies are delaying hiring as the economic recovery is not gaining momentum, which is a gloomy signal for the Swedish labor market", says Jörgen Kennemar, responsible for the analysis of the Purchasing Managers' Index.
It is the first time in six months that the index is below the 50-level. An index value above 50 traditionally indicates increased activity in the sector.
