Swedish Service Sector Contracts In July

(RTTNews) - Sweden's service sector activity deteriorated in July amid weaker demand conditions, survey results from Swanbank and the logistics association Silf showed on Tuesday.

The purchasing managers' index, or PMI, for the services sector dropped to 48.8 in July from 54.3 in June. Any reading below 50 indicates contraction in the sector.

"The economic situation in the service sector is fragile and has difficulty gaining momentum, which is having an impact on employment, which recorded the lowest level since the pandemic year of 2020," Swedbank analyst Jorgen Kennemar said.

Among components, new orders accounted for the largest contribution to the decline in PMI services, followed by business volumes. The employment index fell below the 40 level for the first time since 2020.

The index for raw and intermediate goods prices fell to 52.8 in July from 53.5 in June, indicating that price pressures continue to ease in the services sector.

The composite index also declined to 50.3 in July from 53.6 in June, suggesting continued sluggish economic activity in Swedish business.