Swedish Manufacturing and Construction Sectors Show Signs of Growth and Stabilization in Early 2026

The Swedish manufacturing industry experienced growth in February 2026, with the Purchasing Managers' Index (PMI) rising to 56.1 from 55.9 in January, marking the highest level recorded in four years. According to data from Swedbank and the purchasing managers' organization Silf, an index above 50 indicates expansion, reflecting continued optimism in the sector.

In parallel, the construction sector is showing signs of stabilization as bankruptcies decline. Data from credit reporting agencies UC and Creditsafe reveal that bankruptcies in the construction industry fell by 2% in February and have decreased by 19% compared to the same period in 2024. Overall bankruptcies across all industries dropped by 12% in February. The trend demonstrates a break after four months of decreasing bankruptcy rates, indicating improved conditions for companies.

However, challenges remain as the construction industry is highly sensitive to interest rates, and analysts urge caution. Amanda Aldestam from UC notes that while there are promising signs of stabilization, it's premature to declare a full recovery. Henrik Jacobsson, CEO of Creditsafe, highlighted the cautious nature of the recovery, suggesting that fluctuations may still occur, but emphasized that the overall environment is more favorable than in recent years.

These data collectively point to a positive start for Sweden's industrial sectors in 2026, with manufacturing growth complemented by a reduction in financial stress within construction, suggesting a cautiously optimistic economic outlook.