Sweden Economic Confidence Weakens in February

Sweden’s Economic Tendency Indicator declined to 100.1 in February 2026, the lowest level since late October, down from 102.9 in January. Manufacturing softened mainly due to subdued production plans that fell below historical averages, although relatively low finished-goods inventories provided some support. Confidence in both the trade and service sectors also weakened, with trade sentiment pressured by lower sales volumes over the past three months, partly offset by improved expectations for future sales. In the service sector, weaker recent activity and demand drove the decline. In contrast, construction confidence improved, supported by more optimistic hiring plans and a less negative assessment of order books. Consumer confidence also strengthened, reflecting a more positive view of household finances and the Swedish economy compared with a year earlier, although sentiment remained below normal levels.

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.