Slow recovery in the service sector

The Purchasing Managers' Index for the private service sector rose to 51.4 in December, from revised 51.0 in November, according to Swedbank and Silf.

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Slow recovery in the service sector
Photo: Michael Sohn AP/TT

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It was a smaller increase than expected. Analysts had on average counted on an increase to 52.0 in November, according to a compilation of forecasts made by Bloomberg.

An index value above 50 indicates increased activity in the sector.

"The recovery in the service sector is slow despite interest rate cuts", says Jörgen Kennemar, responsible for the analysis of the purchasing managers' index, in a comment.

The index also shows that price pressure is increasing in the service sector. The index for raw material and input prices rose to 63.1 from 57.7 in November, the highest level in over a year.

"Even if a single month's outcome should not be over-interpreted, the risks of higher service inflation cannot be ruled out", says Jörgen Kennemar.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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