Sweden Services Sector Growth Loses Steam in July

The Services PMI in Sweden rose to 57.4 in September 2026 from an upwardly revised 56.0 in August, marking the highest level since November 2025. New orders were the largest positive contributor to the increase in the PMI (59.0 vs 56.4 in August), followed by delivery times (62.7 vs 60.9). The employment index also increased (49.7 vs 48.0), although it remained below the 50-point threshold for a year. Meanwhile, the business activity index edged down but remained firmly in expansion territory (57.3 vs 57.8). The sector also faced renewed price pressures, with the supplier input price index rising to 73.3, the third-highest level of 2026, from 62.1 in August. “The service economy has strengthened during the third quarter. However, the higher cost pressure is simultaneously squeezing companies’ margins and increasing the need for cost adjustments, which may delay the recovery in the labor market,” said Jörgen Kennemar, responsible for the PMI analysis.

The Services PMI in Sweden rose to 55.8 in August 2026 from a revised 54.3 in July and was above the average for the first eight months of the year (54.1). All sub-indices increased during the month, with business volume making the largest positive contribution to the rise in the services PMI, rising to 57.5 from 54.2 in July. This was followed by order intake (56.2 vs 55.8), employment (47.9 vs 46.2), and delivery times (60.9 vs 60.1). Cost pressures also eased further, as the index for raw and intermediate goods prices fell to 61.6, the lowest in six months, from 66.4 in July. “The service sector strengthened in August, with a clear increase in business volume. However, service companies are still holding off on hiring new employees, and perhaps we need a longer period of stronger service-sector activity before employment picks up,” said Jörgen Kennemar, responsible for the PMI analysis. Meanwhile, the Composite PMI increased to 55.9 in August from 54.7 in the previous month.

The Services PMI in Sweden fell to 54.2 in July 2026 from a revised 56.5 in June, which had marked the highest level since November 2025. Despite the decline, the latest reading remained above the average for the first seven months of the year (53.7). All sub-indices weakened, with the delivery times sub-index making the largest negative contribution to the PMI, falling to 60.1 from 64.9 in June, followed by new orders (55.8 vs 57.6) and business volume (54.0 vs 55.2). The employment index declined to a new annual low of 45.9 from 47.7 in the previous month. Cost pressures continued to ease significantly, with the raw and intermediate goods price index dropping to 65.5 from 75.1 in June. Its 17-point decline over the past two months was the largest in the index's 21-year history. Meanwhile, the Composite PMI fell to 54.7 in July from a seven-month high of 56.9 in June.