Sweden's services sector experienced a downturn in September, marking its first decline in four months, according to data released by Swedbank and the logistics association Silf on Thursday.
The Purchasing Managers' Index (PMI) for the services sector fell to 49.1 in September from 52.4 in August. A PMI reading below 50 signifies contraction, while a score above indicates expansion within the sector.
"This is a notably pronounced and widespread decline, although it's important not to read too much into a single month's result," commented Jorgen Kennemar, a Swedbank analyst. "A sluggish global economy coupled with geopolitical uncertainties may have suppressed activity among service companies."
The most significant factor contributing to the decline in the services PMI was a decrease in order intake, followed by reductions in business volume, extended delivery times, and employment.
Regarding pricing, the pressures on costs eased further in September, with the index for commodity and input prices decreasing to 49.1 from 53.5 in the previous month.
Furthermore, the composite output index fell to 49.7 in September from 52.5 in August, signaling a mild contraction in the Swedish private sector.
