In August, Sweden’s service sector growth slowed slightly, influenced by reduced hiring activity, according to survey results from Swedbank and the logistics association Silf.
The Purchasing Managers’ Index (PMI) for the services sector decreased to 52.9 in August, down from 53.8 in July. Nonetheless, a reading above 50 signifies expansion within the sector, and the index has remained in growth territory for the third consecutive month.
"Companies are hesitating to hire new staff, likely requiring a stronger economy and lower interest rates than currently observed," commented Swedbank analyst Jorgen Kennemar.
The PMI decline in August was primarily driven by weakness in the business volume and employment sub-indices, with the employment index staying below the growth threshold. Conversely, the delivery time index made a positive impact.
Price pressures continued to subside in August, as the index for raw and input prices dropped to 55.9 from 56.7 in July.
Additionally, the composite output index rose to 52.8 in August from 52.5 in July, suggesting an increasing level of business activity.
