FX.co ★ Sweden Business Confidence Strongest Since 2022

Sweden’s business confidence indicator rose for the seventh consecutive month in October 2026, reaching 110.7, up from 109.2 in September. This is the highest reading since May 2022 and remains well above the long‑term average of 100. The upturn was largely driven by a strong improvement in manufacturing, leaving manufacturing and trade as the sectors with the highest confidence levels.

Demand conditions improved, with the balance rising to -15 from -18 in September, reflecting more positive assessments in both manufacturing and services. Employment has been broadly stable over the past three months, while hiring plans edged higher (7 vs. 6), indicating expectations of above‑normal workforce growth.

Labor shortages eased slightly, affecting 22% of firms compared with 20% in September, remaining below the historical average of 25%. However, shortages in manufacturing and construction were still above normal. Sales price expectations increased (24 vs. 22), pointing to more widespread price hikes than usual.

Profitability assessments improved to -2 from -7 in April, placing them close to the historical average. Meanwhile, annual inflation expectations were reported at 2.7%.