Silf/Swedbank Sweden Composite Purchasing Managers Index (PMI)

Silf/Swedbank Composite PMI is published since 2019. It is a composite indicator calculated based on the Manufacturing and Service PMIs. The composite index enables a quick evaluation of the country's economy state and it correlates well with the GDP growth. It is published on the third banking day of every month, at 08:30, together with the Services PMI.

The index is calculated by Swedbank and Silf on the basis of a monthly survey of about 400 purchasing managers. The are asked to evaluate the activity of their company: whether it has increased, decreased or it has not changed. The respondents evaluate orders, production, employment, delivery times and inventories in warehouses.

In the resulting index, the weight of the manufacturing sector reading is 28%, the service sector reading has a weight of 72%. Values more than 50 indicate an economic growth, while values less than 50 indicate a decline. The values are subject to seasonal adjustment.

Often purchasing managers can track changes in market conditions prior to other company employees, because purchases precede company's production activities. Purchasing managers are among the first to notice such changes. PMI is interpreted as a leading indicator of production and inflation, and it is therefore popular with analysts. The growth of the Composite PMI is an indicator of favorable market conditions and can be seen as positive for the Swedish krone.