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2020.04.0311:42:00UTC+00Sweden Services Sector Activity Weakest Since 2012

Sweden's services sector contracted at the fastest rate in 15 years to hit its lowest level since 2012, survey data from Swedbank and the logistics association SILF showed on Wednesday.

The Purchasing Managers' Index for the services sector decreased to 46.9 in March from 56.4 in February.Any reading below 50 suggests contraction in the sector.

The latest monthly decline was the largest in the survey's fifteen-year history and the reading was the lowest since 2012.

The order index and production sub-indices recorded the biggest declines in March followed by employment. The sub-index for the suppliers' delivery times increased for the second straight month, reaching a record high.

"Normally, rising delivery times mean increased demand pressure, but this time it is rather a lack of supply that contributes to longer delivery times partly because of the corona virus and closed borders," Swedbank analyst Jorgen Kennemar said.

Service sector companies plans contracted in March, which indicates a darker economic outlook in the future.

The Composite PMI, which combines manufacturing and services, fell to 45.9 in March from 55.4 in the previous month.

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