Service industries are showing a weak recovery, according to the purchasing managers' index measured monthly by Swedbank and Silf.
Service companies are experiencing a reduced cost pressure. Input prices are not increasing as much as they used to.
"A combination of a sluggish service sector and lower price increase plans from companies likely contributes to the lower cost pressure, which is likely to dampen service inflation in the long run," says Jörgen Kennemar, economist at Swedbank, in a press release.
The composite index, a kind of economic indicator, rose from 48.0 in April to 49.5 in May. An index above 50 is considered to indicate growth.
The rise in May can be seen as a rebound after the weak performance in April," writes Swedbank.
The employment sub-index fell.
