Services PMI Remains Weak

Sweden’s September services PMI moved deeper into contractionary territory (46.3 vs. a revised 48.4 from August).

• This was softer than BBG survey median of 48.5, although that sample only consisted of 3 economists.
• The print corroborates a weak services reading in the KI Economic Tendency Indicator (more closely followed than the PMIs), which saw services continue to reside in "much weaker growth than normal" territory.
• Prices paid and employment remained above 50 but moderated to 58.9 (vs. 69.6 prior) and 51.0 (vs. 55.8 prior), respectively.
• The Riksbank will welcome the slowing in the rate of price rises in the services sector, although there is still more work to do there.
• Elsewhere, the moderation in the employment metric will also provide some comfort for the central bank, given the tightness of the labour market and related feedthrough into wages/inflation.
• The composite PMI printed at 45.4 (from a revised 47.6 in July).
• EUR/SEK and USD/SEK remain higher on the day, but the pairs are more driven by the negative risk sentiment surrounding markets than economic data at present.