Swedish Manufacturing Sector Continues to Grow

Sweden's Swedbank Manufacturing PMI edged up to 57.3 in May 2026 from a downwardly revised 57.0 in April, extending its streak above the long-term average to eleven straight months. It was also the highest reading since February 2022, supported by stronger production (58.1 vs 57.7 in April) and employment (59.1 vs 55.5). Meanwhile, order intake softened to 55.8 from 58.9, while suppliers' delivery times lengthened slightly to 64.1 from 64. On the pricing front, the index measuring suppliers' raw material and input prices fell by 0.4 points to 81.6. Looking ahead, manufacturers remained highly optimistic, with the production plans index edging up to 70.7 from 70.3, marking the second straight month above the 70 threshold. According to Jörgen Kennemar, the Swedish industrial sector continues to strengthen and remains stronger than many of its international peers, while Middle East-related supply disruptions and higher raw material costs have yet to significantly affect production plans.

Sweden’s Swedbank Manufacturing PMI rose to 57.2 in April 2026 from 56.2 in March, extending its run above the long-term average for a tenth straight month. This marked the highest reading since February 2022, supported by stronger new orders (59.4 vs 54.2) and suppliers’ delivery times (64.3 vs 59.6), while inventory purchases (57.0 vs 51.8), employment (55.1 vs 57.9), and production weighed on the overall index. Order backlogs also rose to 59.4 from 53.2, pointing to sustained demand. Looking ahead, firms remained optimistic, with production plans climbing to 70.1, the first time since February 2022 that the index has exceeded 70. On the cost side, the supplier raw and input price index surged by 11.5 points to 81.3, the highest since May 2022, reflecting rising energy prices and supply disruptions linked to developments in the Middle East, which have increased cost pressures across the sector.

Sweden’s Swedbank Manufacturing PMI rose to 56.3 in March 2026 from 56.0 in February, remaining above its long-term average for the ninth consecutive month. This marks the highest reading since March 2022, supported by higher employment (57.9 vs 54.9 in February) and inventory purchases (51.4 vs 53.6). Meanwhile, suppliers’ delivery times lengthened sharply (58.7 vs 52.4), reflecting supply bottlenecks, while new orders also declined (54.6 vs 59.0), marking the largest negative contribution in 20 months. Export and domestic orders moderated to 52.2 and 53.9, respectively, while order backlogs remained stable at 52.9. Firms’ production plans for the next six months stayed elevated at 67.8, reflecting sustained optimism. On prices, the supplier raw and input price index jumped 9.6 points to 67.2, the highest since October 2022, driven by rising global energy costs amid the Middle East conflict.