Sweden Services Growth Weakest Since June 2020

(RTTNews) - Sweden's service sector growth slowed sharply in January to the lowest level since the current expansion cycle began in June 2020 amid falls in new orders and business volume, the purchasing managers' survey results from from Swedbank and the logistics association Silf showed on Friday.

The purchasing managers' index, or PMI, for the services sector dropped to 51.0 in January from 52.9 in December. However, a reading above 50 indicates expansion in the sector.

"It is likely that we have not yet seen the bottom and the effects of a weaker industrial economy and reduced domestic demand in the Swedish economy," Swedbank analyst Jorgen Kennemar said.

Among components, business volume and order intake decreased in January, while the employment index remained historically strong.

There were still price rises across the service sector, even though they are at a lower level than in the early part of 2022. The index for input prices stood at 71.1 in January versus 72.4 in December, which was well above the historical average of 58.0.