Sweden Services Sector Growth Picks Up in May

The Services PMI in Sweden rose to 53.9 in May 2026 from 52.6 in April, but remained below its historical average of 55.6 for a second month. The new orders sub-index contributed the most to the improvement, rising to 53.6 from 50.6 in April. The delivery times index rose for the fourth straight month to its highest level in four years (65.7 vs 63.1), while the employment index also increased (49.1 vs 47.5) but remained in negative territory. Meanwhile, the business volume index declined (48.8 vs 51.2). Cost pressures also intensified, with the raw and intermediate goods price index climbing to 80.1 from 73.4, its highest level since 2022 and well above the historical average of 58.2. Swedbank PMI analyst Jörgen Kennemar noted that the recovery in the sector is slow and fragile, adding that despite the index being in the growth zone, activity levels may still be too weak to support meaningful job creation.

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.