Sweden Economic Sentiment Strongest in Over 3 Years

Sweden’s Economic Tendency Indicator fell to 103 in January 2026 from 103.7 in December, halting six months of improvement, but it remains above normal. Construction confidence recorded the sharpest decline, driven by more pessimistic employment plans, while order books were stable. Consumer sentiment fell marginally, with households cautious about finances but neutral on the overall economy. Trade confidence eased slightly due to weaker past and expected sales volumes, partly offset by favorable inventory views, remaining the strongest sector. Service-sector sentiment declined modestly on a less optimistic demand outlook, with recent business activity steady. Manufacturing sentiment stayed strong, slightly dampened by cautious order book assessments, while sales expectations for the coming three months improved and inventories were unchanged. Firms reported normal past price rises and expect above-average increases ahead.

Sweden’s Economic Tendency Indicator rose to 103.7 in December 2025, marking the highest level since July 2022, following a downwardly revised 101.5 in November. Manufacturing confidence recorded the strongest improvement, supported by firmer production volume outlooks, while views on order books and finished goods inventories remained unchanged. Service-sector sentiment also increased on stronger demand and better recent activity and demand prospects. Trade sentiment improved further, with sales volume expectations rising both near-term and over the coming three months, and fewer respondents flagging inventories as excessive. In contrast, construction confidence declined due to a more pessimistic outlook on order books and softer employment plans. Firms in the business sector maintained expectations of above-normal price rises. Consumer confidence was largely unchanged, with more positive views on household finances tempered by a softer outlook for Sweden’s overall economy.

Sweden’s Economic Tendency Indicator rose to 101.7 in November 2025, remaining above its historical average for a second month after 100.9 in October and beating expectations of 101. Construction confidence showed the strongest improvement, supported by better employment plans, stronger recent activity, and firmer expectations ahead. Service-sector sentiment also increased on stronger demand and solid outlooks. Manufacturing confidence edged higher as views on order stocks became less negative and fewer firms reported excessive inventories. In contrast, trade sentiment softened after October’s sharp rise due to weaker expectations for near-term sales, though firms remain more optimistic than usual over a six-month horizon. Consumer confidence declined after six months of gains as households grew more pessimistic about their finances, but views on Sweden’s overall economy improved.