The Purchasing Managers' Index for the service sector fell in July to 48.8 according to Swedbank and Silf. This can be compared to June's revised figure of 54.3. The setback comes after two months in the growth zone.
"It is a clear setback after the strong outcome in June. But it is also a sign that the economy in the service sector is fragile and has difficulty gaining momentum, which leaves its mark on employment, which noted the lowest level since the pandemic year 2020", says Jörgen Kennemar, responsible for the analysis of the Purchasing Managers' Index.
Analysts had on average expected the index to increase to 54.0 in July, according to a compilation of forecasts made by Bloomberg.
The overall Purchasing Managers' Index, where the manufacturing industry is also included, thus fell to 50.3 in July compared to June's figure of 53.6. An index figure above 50 indicates increased activity in the sector. This becomes the tenth month in a row that the index is in the growth zone.
