Swedish Services Industry Improves in April as Recovery Seen
An index based on responses from purchasing managers rose to a seasonally adjusted 48.6 in April from 47.3 the previous month, Stockholm-based Swedbank, which compiles the index, said today. A reading below 50 signals a contraction. The median estimate of five economists surveyed by Bloomberg was for the reading to rise to 49.
The central bank last month pushed back plans to increase its main lending rate, in part as a strengthening krona has reduced inflation. The Riksbank predicts it won’t increase its 1 percent repo rate until late next year.
The economy is seen reviving this year as demand for exports recover, the Swedish central bank predicted on April 17. Growth in the Nordic country will pick up to 1.4 percent this year from 0.8 percent last year, the Riksbank said.
PMI’s business volumes sub-index rose to 49.5 from 47.9, the order index increased to 49.2 from 46.5 and the employment index rose to 46.8 from 46.2.
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