Sweden Services Growth At 16-Month Low

(RTTNews) - Sweden's service sector activity expanded at the slowest pace in nearly one-and-a-half years in June, though it remained strong overall, survey data from Swedbank and the logistics association Silf showed on Tuesday.

The purchasing managers' index for the services sector fell to 62.8 in June from 67.8 in May.

However, any reading above 50 indicates expansion in the sector. The index also remained above its historical average of 56.4.

Moreover, this was the lowest reading since February 2021, when it was 62.2.

"The June outcome shows a continued strong service economy even though the downside risks have increased with increasingly gloomy households and rising interest rates, which may be an increased challenge for service companies during the second half of the year," Swedbank analyst Jorgen Kennemar said.

The sub-index for delivery times was the largest negative contributor to the headline index in June. This was followed by business volume, employment and order intake.

The index for suppliers' input goods prices decreased marginally to 87.5 in June from 87.8 in May.

The composite PMI, which combines manufacturing and services, dropped to 60.3 in June from 64.2 in the previous month.