Household Consumption in Sweden Declines in May 2025
Sweden experiences a 1.2% decline in household consumption in May 2025, signaling economic challenges.
Key Points
- • Household consumption decreased by 1.2% in May 2025 compared to April.
- • Food and beverage retail consumption saw a 3.1% decline.
- • Overall GDP contracted by 0.2% in May, attributed to reduced consumer spending.
- • Chief forecaster at Swedbank noted that the decline was anticipated.
In May 2025, household consumption in Sweden decreased by 1.2% compared to April, according to Statistics Sweden. Despite this decline, there was a modest year-on-year increase of 0.6% compared to May 2024. The downturn was widespread, affecting several sectors, with food and beverage retail seeing a significant drop of 3.1%. Other sectors impacted included transportation and vehicle services, which experienced a reduction of 2.0%, and recreation and culture, down by 3.9%.
This decrease in household spending contributed to a wider economic contraction, as the country's GDP fell by 0.2% from April to May 2025. The slump in consumer expenditure and lower service sector production were major contributors to this decline. Andreas Wallström, chief forecaster at Swedbank, noted that this decrease was anticipated, reflecting ongoing challenges within the Swedish economy.
The current trends signal how households are adapting their spending in line with shifting economic conditions, raising concerns about future consumption and its implications for the broader economy.