The Purchasing Managers' Index for the service sector fell to 50.1 in January, according to Swedbank and Silf. This can be compared to an index level of 51.2 in December. It is now the third month in a row that the index has fallen and it is now at its lowest level since September 2024.
An index value above 50 traditionally indicates increased activity in the sector.
"The recovery in the service sector is slow and the start of 2025 has begun weaker, while companies are waiting to hire as the economic recovery is not gaining momentum", says Jörgen Kennemar, responsible for the analysis of the Purchasing Managers' Index at Swedbank, according to a press release.
Furthermore, the index for raw and input material prices rose to 60.4 from 57.5 in December.
"It is the highest level in over a year and can be a signal of higher service inflation ahead", says Jörgen Kennemar.
