urchasing Managers´ Index Services, May 2011: Services PMI drops to 57.1 in May: Slower growth in service sector

1. June 7, 2011
Magnus Alvesson, Swedbank, Economic Research Department, Tel. +46 (0)8-5859 3341
Administration, Tel. +46 (0)8-5859 7740, ek.sekr@swedbank.se
Sebastian Bergfelt, Silf, +46 (0)73-944 6450, professionals@silf.se
Purchasing Managers’ Index – Services
Services
Services PMI drops to 57.1 in May: Slower growth in service
sector
The purchasing managers’ index for services (Services PMI) dropped to 57.1 in May,
compared to 61.4 in April. This signals a continuation in the declining trend that started
at the beginning of 2011. That said, the index remains within the growth zone, which
indicates that the service economy is still growing, albeit at a lower rate.
All of the component indices except for planned business activity dropped in May. The
indices for business activity/production and new orders registered the most significant
decreases. The employment index fell only slightly, and demand for labor remains
strong.
Service companies’ expectations for the future are stable. The index for planned
business activity remained at 68.0 in May, relative to April. This suggests that service
companies remain highly confident about continued economic growth.
The index for suppliers' intermediate goods prices dropped from 65.5 in April to 60.7 in
May. The weakening economic trend and falling intermediate goods prices are likely
contributing to lower cost pressure on Swedish service companies.
okt feb jun okt feb jun okt feb jun okt feb jun okt feb jun okt feb
05 06 07 08 09 10 11
30
35
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55
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65
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75
Seasonally Adjusted
Original
Purchasing Managers' Index - Services
Next publication of Services Purchasing Managers’ Index: Tuesday, July 5, 2011

2. Silf / Swedbanks' Purchasing Mangers' Index Service Sector, seasonally adjusted
Components of PMI - Service Other indicies Forecast
Total index Business Delivery New orders Employment Backlog of orders Prices Planned
activity times business
activity
2006 Jan 59.2 64.6 53.5 59.7 57.3 60.4 45.8 68.4
Feb 58.9 65.9 52.7 58.6 56.9 54.8 48.5 62.6
Mar 62.6 70.0 53.9 64.1 59.4 64.0 49.1 65.2
Apr 57.3 60.8 53.4 59.7 52.5 52.6 52.4 67.8
May 61.0 65.5 52.2 64.7 57.6 59.3 54.7 72.4
Jun 66.1 72.2 57.2 70.2 60.4 63.1 58.8 69.8
Jul 62.8 65.2 59.9 63.3 61.8 61.7 50.5 66.5
Aug 64.5 69.2 54.7 66.6 64.8 60.8 54.8 69.9
Sep 61.7 68.6 52.5 65.4 55.7 63.0 55.9 66.8
Oct 61.1 67.2 55.0 61.8 58.5 55.9 54.6 67.2
Nov 63.8 65.2 61.6 63.0 65.7 59.9 55.7 72.8
Dec 67.4 71.6 59.7 68.5 68.0 58.6 53.4 75.3
2007 Jan 66.4 70.9 61.0 68.1 63.1 63.5 58.2 74.2
Feb 63.0 71.0 60.1 63.1 55.9 61.8 60.4 70.6
Mar 59.6 60.8 55.1 62.1 58.4 57.1 56.3 69.2
Apr 66.3 73.3 60.2 69.9 57.4 64.9 58.3 67.1
May 61.2 62.5 59.8 62.5 58.6 66.6 60.7 67.4
Jun 61.9 62.5 56.9 63.6 63.1 61.4 55.0 63.2
Jul 59.9 63.3 61.2 60.7 53.3 60.2 57.6 64.7
Aug 56.9 57.6 59.1 55.1 56.9 52.8 58.0 60.8
Sep 58.1 59.0 57.2 54.9 63.3 57.1 52.4 62.1
Oct 57.0 55.7 56.6 56.2 60.4 53.1 57.1 68.9
Nov 60.7 66.9 54.9 61.1 58.1 58.7 61.4 54.5
Dec 62.2 66.7 57.0 61.4 63.0 64.7 62.3 60.3
2008 Jan 58.0 60.0 52.7 57.1 62.3 56.4 63.6 67.8
Feb 56.6 57.5 54.3 59.0 54.0 59.0 61.5 64.8
Mar 54.7 54.1 52.7 54.2 58.4 52.9 59.7 71.9
Apr 52.9 53.6 49.3 49.9 60.7 53.5 56.4 62.3
May 61.0 69.0 50.8 58.0 66.7 56.2 57.0 64.7
Jun 51.8 56.0 49.4 46.5 58.5 44.8 63.4 63.3
Jul 52.9 57.0 45.4 48.9 62.2 45.0 65.4 59.4
Aug 50.4 52.6 49.6 45.6 56.6 48.9 56.9 60.6
Sep 52.0 56.2 47.6 46.8 60.2 38.7 57.8 56.4
Oct 42.3 43.9 45.6 35.0 49.8 44.2 57.8 48.0
Nov 43.8 43.7 49.6 37.0 50.1 35.8 53.5 42.6
Dec 38.2 37.5 39.8 36.9 39.6 37.1 45.4 40.4
2009 Jan 35.5 33.3 42.4 35.8 30.7 28.5 49.0 34.2
Feb 38.4 37.6 38.8 36.3 42.9 35.0 47.7 41.4
Mar 40.9 44.1 41.8 42.7 32.7 39.5 48.7 37.2
Apr 40.3 41.4 39.1 40.3 40.2 39.4 43.0 46.9
May 41.0 44.6 42.9 44.1 29.3 38.7 41.5 44.9
Jun 41.2 43.5 39.8 45.0 33.2 43.2 34.9 50.9
Jul 42.3 44.5 38.2 46.8 35.9 42.8 39.3 54.6
Aug 45.6 50.9 41.0 50.6 34.6 47.2 45.3 55.6
Sep 48.5 52.6 45.6 55.1 34.9 54.2 49.0 58.8
Oct 55.0 61.8 47.2 62.3 41.3 62.5 44.9 61.2
Nov 51.3 56.5 47.8 56.8 38.6 57.0 44.6 67.5
Dec 47.6 52.3 46.7 49.8 38.5 48.5 52.6 61.4
2010 Jan 55.4 59.5 50.8 59.5 47.6 56.4 49.0 62.0
Feb 61.2 64.2 54.0 68.0 52.6 61.0 46.7 75.8
Mar 61.6 65.2 58.7 64.1 55.8 60.7 56.3 72.3
Apr 62.6 66.6 61.1 64.8 55.4 61.5 60.7 74.5
May 59.7 60.8 59.8 61.1 56.0 59.3 63.2 69.9
Jun 59.1 61.3 61.7 59.7 52.4 60.3 61.6 68.5
Jul 62.7 66.0 61.1 65.5 55.1 63.2 62.2 71.1
Aug 63.8 65.9 62.1 67.8 55.8 63.6 61.7 70.3
Sep 60.9 59.4 64.4 63.4 54.7 60.1 63.2 73.5
Oct 63.7 65.0 61.7 67.1 57.9 61.3 60.2 76.4
Nov 64.1 64.9 58.8 67.6 62.3 63.9 65.7 77.8
Dec 65.9 69.5 64.5 65.8 62.9 60.7 63.8 77.0
2011 Jan 65.8 70.7 61.3 66.3 63.1 64.9 67.5 78.2
Feb 62.3 62.9 62.6 61.7 62.2 58.7 69.3 70.1
Mar 61.1 64.7 60.8 59.3 60.1 56.1 65.1 70.1
Apr 61.3 63.2 60.3 61.7 59.1 58.6 65.5 68.0
May 57.1 56.5 58.5 56.0 58.1 50.9 60.7 68.0

3. June 7, 2011
Magnus Alvesson, Swedbank, Economic Research Department, Tel. +46 (0)8-5859 3341
Administration, Tel. +46 (0)8-5859 7740, ek.sekr@swedbank.se
Sebastian Bergfelt, Silf, +46 (0)73-944 6450, professionals@silf.se
Purchasing Managers’ Index – Services
Services
Silf / Swedbanks' Purchasing Mangers' Index Service Sector, original
Components of PMI - Service Other indicies Forecast
Total index Business Delivery New orders Employment Backlog of orders Prices Planned
activity times business
activity
2006 Jan 53.7 57.0 50.8 53.9 52.3 54.0 46.9 65.6
Feb 57.5 63.8 52.6 57.8 54.3 56.9 49.1 63.2
Mar 63.6 72.6 51.2 66.7 59.5 66.7 48.8 65.5
Apr 59.6 63.6 52.7 63.6 54.6 55.6 53.6 70.9
May 63.6 69.2 52.9 67.3 60.6 62.5 56.7 76.0
Jun 72.3 78.8 61.0 76.8 67.5 68.3 61.0 73.8
Jul 58.9 58.1 62.8 55.8 61.6 54.7 52.3 67.4
Aug 66.5 71.6 53.4 69.3 68.2 63.6 54.5 69.3
Sep 64.0 72.6 53.5 68.6 55.8 64.0 57.0 66.3
Oct 60.8 67.0 56.1 61.2 57.1 55.0 53.0 66.0
Nov 62.2 64.1 62.0 59.8 64.1 56.5 52.2 69.6
Dec 63.6 67.4 57.4 64.9 62.8 56.4 48.9 71.3
2007 Jan 60.9 63.3 58.3 62.2 58.2 57.1 59.2 71.4
Feb 61.7 68.9 60.0 62.2 53.3 64.0 61.1 71.1
Mar 60.7 63.4 52.4 64.6 58.5 59.8 56.1 69.5
Apr 68.7 76.2 59.5 73.8 59.5 67.9 59.5 70.2
May 63.8 66.3 60.5 65.1 61.6 69.8 62.8 70.9
Jun 68.0 69.0 60.7 70.2 70.2 66.7 57.1 67.1
Jul 56.1 56.3 64.1 53.1 53.1 53.1 59.4 65.6
Aug 58.8 60.0 57.8 57.8 60.2 55.6 57.8 60.2
Sep 60.4 63.1 58.1 58.1 63.4 58.1 53.5 61.6
Oct 56.7 55.6 57.8 55.6 59.1 52.2 55.6 67.8
Nov 59.1 65.8 55.3 57.9 56.6 55.3 57.9 51.3
Dec 58.4 62.5 54.7 57.8 57.8 62.5 57.8 56.3
2008 Jan 52.5 52.4 50.0 51.2 57.3 50.0 64.6 65.0
Feb 55.3 55.4 54.2 58.1 51.4 61.1 62.2 65.3
Mar 55.8 56.8 50.0 56.8 58.6 55.6 59.5 72.2
Apr 55.3 56.4 48.7 53.8 62.8 56.4 57.7 65.4
May 63.6 72.7 51.5 60.6 69.7 59.4 59.1 68.2
Jun 58.0 62.5 53.1 53.1 65.6 50.0 65.6 67.2
Jul 49.0 50.0 48.3 41.4 62.1 37.9 67.2 60.3
Aug 52.3 55.0 48.3 48.3 60.0 51.7 56.7 60.0
Sep 54.3 60.3 48.5 50.0 60.3 39.7 58.8 55.9
Oct 42.0 43.8 46.8 34.4 48.4 43.3 56.3 46.9
Nov 42.2 42.6 50.0 33.8 48.5 32.4 50.0 39.4
Dec 34.4 33.3 37.5 33.3 34.4 34.8 40.9 36.4
2009 Jan 30.0 25.7 39.7 30.0 25.7 22.1 50.0 31.4
Feb 37.1 35.5 38.7 35.5 40.3 37.1 48.4 41.9
Mar 41.9 46.8 39.1 45.3 32.8 42.2 48.4 37.5
Apr 42.7 44.2 38.5 44.2 42.3 42.3 44.2 50.0
May 43.6 48.4 43.5 46.8 32.3 41.9 43.5 48.4
Jun 47.3 50.0 43.5 51.6 40.3 48.4 37.1 54.8
Jul 38.5 37.5 41.1 39.3 35.7 35.7 41.1 55.6
Aug 47.5 53.3 39.7 53.3 37.9 50.0 45.0 55.0
Sep 50.9 56.7 46.6 58.3 35.0 55.2 50.0 58.3
Oct 54.7 61.7 48.3 61.7 40.0 61.7 43.3 60.0
Nov 49.6 55.4 48.2 53.6 37.0 53.6 41.1 64.3
Dec 43.7 48.1 44.4 46.2 33.3 46.3 48.1 57.4
2010 Jan 49.9 51.9 48.1 53.7 42.6 50.0 50.0 59.3
Feb 59.8 62.2 53.9 67.1 50.0 63.2 47.4 76.3
Mar 62.7 67.9 56.0 66.7 56.0 63.4 56.1 72.6
Apr 65.0 69.4 60.4 68.7 57.5 64.4 61.9 77.6
May 62.3 64.5 60.5 63.7 59.0 62.5 65.3 73.4
Jun 65.2 67.9 65.5 66.4 59.5 65.5 63.8 72.4
Jul 58.9 59.0 64.0 58.0 55.0 56.1 64.0 72.0
Aug 65.8 68.3 60.8 70.5 59.2 66.4 61.5 69.7
Sep 63.2 63.5 65.3 66.7 54.8 61.1 64.3 73.0
Oct 63.4 64.8 62.8 66.5 56.6 60.4 58.6 75.2
Nov 62.5 63.8 59.1 64.4 60.7 60.5 62.2 74.6
Dec 62.1 65.3 62.2 62.2 57.7 58.5 59.3 73.0
2011 Jan 60.3 63.1 58.6 60.5 58.1 58.5 68.5 75.4
Feb 60.9 60.8 62.5 60.8 59.6 60.8 70.0 70.6
Mar 62.2 67.3 58.1 61.9 60.3 58.8 64.8 70.4
Apr 63.6 66.0 59.7 65.6 61.2 61.5 66.8 71.1
May 59.6 60.3 59.2 58.6 61.1 54.1 62.8 71.5

4. Silf/Swedbank’s
Purchasing Managers’ Index – Services
- objectives and methodology
History Silf and Swedbank AB publ. made the first joint – internal – calculation of the
“Purchasing Managers’ Index” for the service sector of the four indexes (PMI) during
2005. The model for PMI – Services is the U.S. based Non-Manufacturing Index and
the Swedish PMI, which has been published since November 1994
Participants About 200 purchasing managers in the service sector.
Publication Third weekday of each month, 8:30 am.
Analysis Period Comparison with previous month.
Composition
of PMI – Services (%) New orders (within the company) 35
Business activity (within the company) 25
Employment (within the company) 20
Suppliers’ Delivery Times 20
Other leading indicators
(not included in PMI – Services)Backlog of Orders
Suppliers’ intermediate goods prices
Planned business activity next six months
Objective Quick economic indicator
Simple statistics
Statistics with relatively short publication intervals
Constant contact with a well-informed professional group
Calculation According to “diffusion index”. Positive changes are noted in percent for the four sub
indexes. The percentage of unchanged replies, multiplied by 0.5, is added to this
figure. Then the different sub indexes are weighted as described above to reach the
total index. The Purchasing Managers’ Index – Services does not indicate activity
levels but rather monthly changes in activity in the service sector.
“Break-even” The dividing line between growth and decline – in line with US praxis – has been
drawn at a total index of 50. However, this boundary or “neutral growth zone” should
not be applied excessively. Rather, “Break-even” at 50 indicates a target value.
We believe we have used reliable sources and procedures to generate and analyze the Purchasing Managers’ Index (PMI –
Services). However, Swedbank AB (publ) and SILF (earlier Organisationen för Inköp och Logistik, /I&L/ – The Organization
for Purchasing and Logistics) cannot guarantee the accuracy or completeness of the analyses and cannot be responsible for
any errors or omissions in the basic data or processing thereof. The reader should base any decisions on other background
material as well.
Swedbank AB (publ), SILF. their employees, and other coworkers accept no liability whatsoever for any direct or
consequential loss or injury of any kind arising from any errors or omissions in the analyses presented in the Purchasing
Managers’ Index – Services.