Swedish Manufacturing Industry Sees Strong Growth and Positive Sentiment in September 2026

September 2026 brought encouraging signs for the Swedish manufacturing sector, with key indicators showing robust expansion and heightened business confidence despite some emerging cost pressures.

The Purchasing Managers' Index (PMI) for Sweden's manufacturing industry rose to 58.1 in September, marking the highest reading in three months and remaining above its historical average for the fifteenth month in a row. This increase was driven primarily by broad-based growth in order intake and production, according to statistics compiled from over 200 purchasing managers. The industry experienced faster growth in both domestic and export orders, with order backlogs increasing significantly.

The strong PMI reading was bolstered by production plans that strengthened well above historical averages, reflecting higher order intake and rising inventory levels. Employment plans also improved within the manufacturing sector, signaling an expected increase in workforce numbers. Subdivisions of the technology industry, including metal goods, electrical equipment, and transport vehicles, reported particularly positive sentiment. However, not all subsectors shared this optimism, as the metal industry saw more pessimistic views, and the automotive industry experienced a sharp decline in confidence due to worsening order assessments.

Despite these gains, there are concerns over rising costs. Indices for raw materials such as copper, steel, electronic components, transportation, and energy climbed notably in September. This cost pressure could contribute to inflation risks if companies pass on higher prices to consumers. Price plans across manufacturing and other sectors indicate many firms intend to raise prices in response.

Consumer confidence also made a noteworthy comeback, reaching its highest level since December 2021, reflecting a strengthening of household sentiment for the first time since late 2024. Employment plans improved across all sectors of the economy, especially in construction, and the general business climate remained strong.

Economists attribute the brightening outlook to an improved global economic environment and resilient domestic demand. However, the balance between growth and inflation pressures remains delicate, with interest rate considerations likely to influence future business and consumer sentiment.

Overall, September's data from the Konjunkturbarometern and PMI surveys portray a manufacturing industry in expansion mode with solid employment prospects, raising hopes for continued positive momentum in Sweden's key industrial sector.