Foreign European countries: development of the service sector according to the composite purchasing managers' index

Introduction. Foreign European countries, dominating in the modern world economy, show signs of heterogeneity of development, especially in the tertiary sector of the economy. The purpose of the study is to perform a systematic and structural analysis of the development of the countries according to the Purchasing Managers' Index in the service sector and to identify factors affecting the changes in this index. Materials and Methods. Statistical data from open sources were used as materials. The study employed such methods as the systemic and structural analysis (understanding the Index and its composite nature, the typology of foreign European countries), the spatial analysis of business activity in the service sector (differentiation of countries), and the structural and functional approach (factors that influence the changes in the Purchasing Managers' Index). Results. The Purchasing Managers' Index in the service sector has been analyzed. The methodology for calculation of the Index has been described; its strengths and weaknesses, as well as its impact on the economy have been assessed. A typology of foreign European countries has been created according to the leading macroeconomic indicator - the composite Purchasing Managers' Index. This made it possible to draw a parallel with the socio-economic development of the countries of the studied region in terms of the 'center-periphery' model. The internal and external factors in the development of business activities in the service sector of national economies have been identified. Discussion and Conclusion. The development of the service sector has been studied at the level of foreign European countries. The composite Purchasing Managers' Index has been considered as an indicator of the development over time. The authors have been able to expose the issues of studying the tertiary sector of the economy as one of the relevant areas of macro-regional research. The territorial differentiation of the countries according to their business activity in the service sector has been revealed, which can be used in projected estimates in the field of management and implementation of regional policies. The proposed approach to the study of the service sector can be applied at country and regional levels.