FX.co ★ Sweden Services Activity Contracts Sharply

Sweden’s Services PMI dropped sharply to 48.3 in February 2026 from 53.8 in January, signaling the first contraction in seven months and the steepest decline since July 2025. The downturn points to a broad-based slowdown in the services sector, as international uncertainty and regional tensions weighed on business activity. New orders fell to 47.2 from 54.5, and business volumes also slipped below the 50 threshold for the first time in ten months, making them the main drivers of the overall decline. Companies reported weaker production plans, down to 44.3—the lowest level since 2020—while hiring intentions remained subdued at 48.5, compared with 49.6, and have now been weak for five consecutive months. Prices continued to rise but at a slower pace (58.0 vs. 59.9), and supplier delivery times stayed elevated at 55.2. “This is a surprisingly large setback after last year’s strong upswing. It is too early to tell whether the decline is temporary or more persistent, but uncertainty for both the Swedish and global economies has increased following Israel’s and the US’s attacks on Iran,” said Jörgen Kennemar, PMI analyst at Swedbank.