Purchasing index Norwegian PMI fell from 50.2 in April to 46.6 in May. All indices point this month downward. Thus we go towards a slowdown in the Norwegian industry.
-On line with several other signals from industry fell PMI sharply in May. All sub-indicators also went in the same, negative direction. The picture that now characterized by Norwegian industry is joined by both Statistics Norway’s business tendency survey and regional networks from Norges Bank. says Svein-Egil Hoberg in NIMA – Norwegian Association of Purchasing and Logistics, in a message.
Oil Effects
The largest contributors to the fall in Norwegian PMI data for May month, the two sub-indices, new orders and production. While orders index fell from 50.4 to 45.3 in May, experienced manufacturing index falling from 54.4 to 48.4.
-Ordreinngangen was particularly weak for domestic orders, and therefore points clearly in direction of the oil industry downturn among firms in general. Employment also showed a staffing decline among companies in general, says Hoberg.
PMI data for May confirms also the suspicion that the rise in April largely due the effect of the timing of Easter, and was a warning of a trend change. If we look through this it appears that the trend in the PMI clearly been broken in Q2, according to NIMA.
Rising unemployment
According unemployment figures from NAV we are now in a period of gradually rising unemployment. Corresponding figures from Statistics Norway show a more marked growth. NIMAs PMI report for May confirms higher unemployment in the industry.
-Sysselsettingsindeksen fell from 47.9 to 45.0 in May. This indicates that the trend of ever lower industrial employment continues, says Hoberg adding:
– The buyers are currently seeing no positive tendencies of the moment, which generally suggests a new, negative trend in the industry.
This is Norwegian PMI
PMI stands for Purchasing Managers Index. The monthly management report PMI in more than 40 countries. It measures the flow of goods in companies. Figures may affect exchange rates and interest rate markets.
Values above 50 expresses increased activity or growth. Values below 50 can be an expression of decline.
The index consists of five sub-indices: New orders, production, employment, delivery and storage of purchased goods.
Norwegian PMI compiled by NIMA – Norwegian Association of Purchasing and Logistics and Danske Bank Norway.
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