Sweden Services Growth Eases In April

(RTTNews) - Sweden's service activity expanded at a slower pace in April amid inflationary pressures caused by the Middle East war along with uncertain global environment, survey results from Swedbank and the logistics association Silf showed on Wednesday.

The purchasing managers' index, or PMI, for the services sector dropped to 52.5 in April from 55.9 in March. However, a score above 50 indicates expansion in the sector.

Among components, the sub-index for new orders accounted for the largest negative contribution to the decline in the PMI services, followed by business volume and employment. The index for delivery times rose for the third consecutive month to a four-year high, likely due to growing disruptions in the supply chain.

"An uncertain global situation and rising costs due to developments in the Middle East mean increased challenges for the services sector and the Swedish labor market," Swedbank Analyst Jorgen Kennermar, said.

On the price front, cost pressures intensified, with the index for raw and intermediate goods prices rising to 72.1 from 68.7 in March.

The composite PMI also dropped to 53.8 in April from 56.0 in March, indicating a slowdown in the Swedish business sector recovery.