The service sector activity in Sweden declined for the first time in five months in April, according to survey results from Swedbank and the logistics association Silf.
The purchasing managers' index (PMI) for the services sector decreased to 48.1 in April from 54.1 in March. A score above 50 indicates growth, whereas a score below 50 points to contraction in the sector.
The largest negative impact on the headline PMI came from the business volume index, followed by orders received and delivery times. Nonetheless, employment continued to make a positive contribution for the second consecutive month.
According to Swedbank analyst Jorgen Kennemar, the surprisingly sharp decline may be temporary. However, it suggests the economic recovery is not on solid ground.
Data indicated that the index for commodity and input prices increased to 61.9 in April from 58.7 in March. This reflects higher price increases in the service sector compared to the industry.
The composite output index, which gauges the level of activity in the business world, dropped to 49.0 in April. This represents a decline from 53.0 in March, signifying a loss of momentum in business activity.
