Swedish Manufacturing Confidence Drops to Normal Levels in February 2026 Amid Mixed Economic Signals

The Swedish manufacturing sector experienced a noticeable decline in confidence in February 2026, as reflected in the latest barometer indicator published by Konjunkturinstitutet (KI). The overall barometer indicator slipped from 102.8 in January to 100.1 in February, signaling a return to normal sentiment levels within the economy. The manufacturing industry's confidence sharply fell, with its sub-index plummeting from 103.4 to 97.7, primarily due to lower production plans that remained below historical averages. Despite this, inventory levels of finished goods stayed below typical excess, which softened the decline.

In contrast to the manufacturing downturn, household confidence improved, rising from 95.0 to 96.3, slightly surpassing analyst expectations. This boost is largely attributed to better perceptions of both personal and national economic conditions compared to the previous year, though confidence remains weaker than normal. Other sectors, such as trade and services, also reported declines in their respective confidence indicators, whereas construction showed positive trends.

Businesses generally expect moderate sales price increases over the next three months, except in grocery retail, where reduced sales prices are anticipated. This mixed economic outlook highlights challenges for Sweden’s industrial sector amid sporadic optimism from households and construction, indicating a nuanced economic environment as detailed by KI's February economic barometer.