Purchasing Manager Index

PMI - services rise to 60.1 in July: all component sub-indices are contributing to a strong service economy

• The Purchasing Managers' Index for the service sector (PMI services) rose to 60.1 in July from 54.6 for the previous month. There was a broad increase among the component sub-indices, all of which were listed in the growth zone. The order inflow provided the greatest positive contribution to the total index, 3.3 index units, but rising business volumes also account for much of the increase.

• The sub-index for the order inflow rose to 65.5 in July, the highest level since the end of 2010. The increase in the order inflow left its mark on order backlogs and business volumes, both of which posted higher sub-indices compared to the previous month. Signs of improved demand and a brighter view of order backlogs probably impacted the production plans of the service companies, which were more optimistic in July.

• The sub-index for employment rose by 4.5 index units to 56.6 in July. Employment has thus risen for seven consecutive months. The fact that planned business volumes continue to remain at a high level while production and the state of the order book are in the growth zone, points to greater need for hiring over the next six months.

• The index for supplier intermediate goods prices fell back below the 50 mark and was listed at 49.7. Since March of this year, the three-month sliding average has assumed an index of roughly 50, reinforcing the picture of subdued price pressure from the supply chain.

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