Sweden Services Sector Stays Strong

The Services PMI in Sweden fell sharply to 48.3 in February 2026 from January’s 53.8, marking the first contraction in seven months and the largest since July 2025. The decline reflects a broad slowdown in the sector, as international uncertainties and regional tensions weighed on business activity. New orders (47.2 vs 54.5 in January) and business volumes contributed most to the drop, both falling below 50 for the first time in ten months. Firms reported weaker production plans, at 44.3, the lowest since 2020, and hiring intentions remained subdued (48.5 vs 49.6) for five months. Prices continued to rise, though at a slower pace (58.0 vs 59.9) and supplier delivery times remained elevated at 55.2. “It is a surprisingly large decline after last year’s strong upswing. It is too early to say whether this is temporary or lasting, but uncertainty for both the Swedish and global economy has increased after Israel’s and the US’s attacks on Iran,” said Jörgen Kennemar, Swedbank’s PMI analyst.

The Services PMI in Sweden fell to 54.3 in January 2026 from a downwardly revised 56.3 in the previous month. This marked the softest pace of growth since August 2025 and brought the index below its historical average of 55.6. All major sub-indices declined, led by new orders, which dropped to 55.2 from 59.5 in December, reaching a six-month low. The business volume index (56.1 vs 56.6), employment index (49.7 vs 49.8), and delivery times index (55.2 vs 56.5) also fell. Additionally, price pressures in the services sector intensified, with the index for raw and intermediate goods prices rising to 60.1, the highest level in a year, from 59.5 in December. Jörgen Kennemar, responsible for PMI analysis, said, “It is too early to determine whether it is a temporary slump or not. Companies are still optimistic in their business plans, which suggests that it is a temporary slowdown."

The Services PMI in Sweden fell to 56.7 in December 2025, from an upwardly revised 59.2 in November, which had marked the highest level since June 2022. Despite the fall, the index remained above its historical average of 55.6 for the fourth month. The largest negative contribution came from business volume, with the sub-index dropping to 57 from 65.6 in November. The delivery times index (57.1 vs 59.6) and the order backlog index (57.7 vs 58.3) also declined, while the employment index returned to negative territory (49.8 vs 50). Moreover, the index for raw and intermediate goods prices rose to an 11-month high (59.2 vs 57.5), indicating persistent price pressures in the sector. "Despite a weaker finish, the sector gained momentum in Q4. Lower interest rates and increased consumption and investment needs have begun to affect service companies and their business plans to an extent we have not seen since the first half of 2022,” said Jörgen Kennemar, responsible for the PMI analysis.