Swedish Services Growth Eases In July

(RTTNews) - The Swedish service sector growth eased in July from a 7-month high in the previous month, survey results from Swedbank and the logistics association Silf showed on Wednesday.

The purchasing managers' index, or PMI, for the services sector dropped to 54.2 in July from 56.5 in June. A score above 50 indicates expansion in the sector. Moreover, the reading stayed above the average for the first seven months of the year.

Among components, the sub-index for delivery times accounted for the largest negative contribution to the decline in PMI services, followed by new orders, but both remain in the growth zone. The index for employment declined to a new annual low of 45.9.

On the price front, cost pressures eased in July, and the index for raw and intermediate goods prices fell to 65.5 in July from 75.1 in June.

The composite output index dropped to 54.7 in July from 56.9 in June, indicating a slower growth in the Swedish business economy.

Jorgen Kennemar, analyst at Swedbank, noted that while the business sector recovery continues, the slowdown in July reflects moderating momentum. The easing cost pressures could provide a favorable backdrop for the Riksbank's interest rate decision scheduled for later in August.