Sweden’s service sector activity contracted for the fourth successive month in November amid sharp falls in output and new orders, survey data from Swedbank and the logistics association Silf showed on Monday.
The purchasing managers’ index for the services sector dropped to 45.8 in November from 46.6 in October. A reading below 50 indicates contraction in the sector.
“The deteriorating global economy is leaving an increasingly deep impression on Swedish industry, not least in the form of reduced order intake and lower production, but also a reduced price pressure from the supplier level, which on in the long term can moderate the already high inflation,” Swedbank analyst Jorgen Kennemar said.
Among components, the manufacturing sub-index accounted for the largest negative contribution, followed by employment and delivery times.
The index for production plans dropped to 53.7 in October, the lowest level in more than two years, from 57.2 in the prior month.
Price pressures in the service sector continued to ease sharply in November, with the index for raw materials and input prices falling to 58.0 from 67.4 in October.