04.01.202406:54:00UTC+00Sweden Services Activity Stabilises In December

Sweden's service sector signalled a stabilisation in Decembeer after contracting in the previous four months, survey results from Swedbank and the logistics association Silf showed on Thursday.

The purchasing managers' index, or PMI, for the services sector rose to a five-month high of 50.0 in December from 48.5 in November.

Any reading below 50 suggests contraction, while a score above 50 indicates expansion in the sector.

The survey revealed that delivery times accounted for the largest positive contribution to the increase in PMI services, followed by business volume and order intake, while employment dragged down the overall index.

On the price front, the index for raw materials and input prices fell to 57.9 in December from 59.0 in the prior month.

"Even if the larger service companies show a milder economic slowdown in 2023 compared to previous economic downturns, the downside risks remain high," Swedbank analyst Jorgen Kennemar said.

"This is especially true now that the Swedish market is being pressured by weak consumption and reduced housing construction."