Sweden Economic Confidence Strongest Since 2022

Sweden’s Economic Tendency Indicator rose for a third straight month to 104.7 in July 2026 from an upwardly revised 102.1 in the previous month, marking the highest level since June 2022. The reading signaled a stronger-than-normal business climate, led by manufacturing, which climbed to 107.9 from 105.2 as firms reported more optimistic production plans and stronger order intake in both domestic and export markets. Retail sentiment (112.9 vs 106.5) surged to the highest since March 2022, driven by stronger sales expectations and assessments of current trading conditions. Construction confidence (99.4 vs 97.6) returned to normal level on improved hiring and order book expectations, while services edged up (102.5 vs 102.3). Household confidence also improved (97.1 vs 94.2) as consumers became less pessimistic, though it remained below normal. Meanwhile, business price plans stayed above normal, especially in manufacturing, while inflation expectations for the year ahead eased.

Sweden’s Economic Tendency Indicator climbed to 101.7 in June 2026 from an upwardly revised 99.9 in the prior month, marking the highest print since July 2022. Manufacturing confidence hit its highest since December 2022 (105.1 vs 101.4 in May), as all components strengthened, notably inventories, with fewer firms reporting excess stock, while order books improved in both domestic and export markets. Services sentiment edged up (101.9 vs 101.5), lifted by professional activities, while consumer mood rose modestly (93.6 vs 92.8) but stayed below normal. In contrast, construction sentiment slipped (97.3 vs 99.4), reflecting revised employment plans. Retail trade eased (108.4 vs 110.5), though it remained the strongest sector overall. Price plans eased across industries, with fewer firms intending to raise prices, yet levels stayed above normal. Manufacturing was the only sector where price plans remained elevated, while construction and retail declined, and services were unchanged.

Sweden’s Economic Tendency Indicator edged up to 99.3 in May 2026 from a seventh-month low of 99.2 in April. Trade remains the only sector where sentiment is stronger than normal (109.1 vs 108.3 in April), due to few firms reporting large inventories, while their assessments of sales volumes over the past three months and expectations for the next three months are also positive. Consumer confidence improved but remained below normal (92.4 vs 91.7). Manufacturing sentiment rose slightly (100.5 vs 100), with production increases matching historical average. Meanwhile, sentiment deteriorated in construction (99.6 vs 100.3), as firms continued to report relatively weak order books, but they expect an increase over the next three months. The same trend was seen in the private services sector (101.3 vs 101.9), amid a still-negative assessment of outstanding business volumes. The share of firms expecting to raise prices over the next three months rose sharply and is now well above normal.