Sweden Services Growth Strongest Since June 2022

(RTTNews) - Sweden's services activity expanded at the fastest pace in more than three years in November, survey results from Swedbank and the logistics association Silf showed on Wednesday.

The purchasing managers' index, or PMI, for the services sector rose to 59.1 in November from 55.9 in October. That was also above its historical average of 55.6.

"Lower interest rates and increased consumption and investment needs have begun to have an impact on service companies and their business plans to an extent that we have not seen since the first half of 2022," Swedbank analyst Jorgen Kennemar said.

Among components, business volume accounted for the largest positive contribution to the rise in the PMI services, followed by delivery times and employment, while the order backlog index retreated from high levels.

Cost pressures intensified in November, with the index for raw and intermediate goods prices rising to an 11-month high of 57.2 from 56.1 in October.

The composite output index also climbed to a new annual high of 57.8 in November from 55.6 in October.