Sweden Services Growth Moderates In June

Sweden's services sector activity expanded at a softer pace in June, survey data from Swedbank and the logistics association SILF showed on Monday.

The Purchasing Managers' Index for the services sector fell to 67.4 in June from a revised 71.3 in May.

The latest reading was the third highest in the fifteen-year history of the survey. Any reading above 50 indicates expansion in the sector.

"This shows that the service economy is in a strong expansive phase and that may receive additional support during the third quarter now that the corona restrictions are being withdrawn," Swedbank analyst Jorgen Kennemar said.

Among the four sub-indices, three declined in June. Order intake and employment declined, and suppliers' delivery time lengthened.

Price pressures increased further in June and supplier's input goods rose to a record high.

The composite PMI, which combines manufacturing and services, decreased to 66.9 in June from 69.8 in the previous month.

"This is the second highest level in the index's history and means that Swedish business and industry will continue to expand at a rapid pace, even though increased production costs and supply shortages mean challenges in the long run," Kennemar said.

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