Sweden Services Sector Growth Slows

The Services PMI in Sweden fell to 52.5 in April 2026, back below its historical average of 55.6 and following an upwardly revised 55.9 in March, which marked the highest level since December 2025. The largest negative contribution came from new orders, with the sub-index dropping to 50.6 from 58.1. The business volume index (51.6 vs 54.8 in March) also declined, while the employment index remained in negative territory (47.3 vs 49.2). The delivery times index increased (62.2 vs 60.2), reaching a four-year high and reflecting growing supply chain disruptions. Moreover, the index for raw and intermediate goods prices rose to an over three-year high of 72.1 (vs 68.7), well above its historical average of 58.1. “The recovery in the services sector is losing momentum. An uncertain global situation and rising costs due to developments in the Middle East mean increased challenges for the services sector and the Swedish labor market,” said Jörgen Kennemar, Swedbank’s PMI analyst.

The Services PMI in Sweden jumped to 55.7 in March 2026 from February’s 48.7, returning to expansion territory after a brief contraction. The rebound was driven mainly by strong recoveries in new orders (57.8 vs 47.5 in February) and business volumes (54.9 vs 44.7), both rising back above the 50 threshold. However, the broader trend suggests some loss of momentum, with the first-quarter average below the previous quarter. Employment remained a weak spot, staying below 50 for a sixth straight month (49.3 vs 48.8), indicating continued caution in hiring. Meanwhile, cost pressures intensified, with input prices rising to 67.8, the highest since August 2023, alongside longer supplier delivery times (59.7 vs 56.0). The Composite PMI also improved to 55.9 from 50.8, signaling stronger overall business activity. “The recovery regained pace in March after a weak February, but downside risks remain as long as the Middle East conflict persists,” said Jörgen Kennemar, Swedbank’s PMI analyst.

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.