Sweden’s Manufacturing PMI Rises to 60.5 in October, Highest Since January 2022
Key Facts
Sweden’s manufacturing purchasing managers’ index rose to 60.5 in October 2026, from 58.5 in September, according to a statement from Swedbank and Silf. The reading was the highest since January 2022, the statement said, with the index remaining above its historical average for the 16th consecutive month. The index signals activity growth when it exceeds 50 and contraction when it falls below that level. Swedbank attributed the increase to higher output and employment and lower inventory purchases. Output made the largest positive contribution to the reading.
The reading followed a monthly improvement, with the index rising two points from September. The statement said the new orders and delivery times components edged lower, but fell from elevated levels. By contrast, higher output and employment supported the index, alongside a decline in inventory purchases. Swedbank said output made “by far the largest positive contribution” to the reading. The survey covered manufacturing companies polled by its compiler during October.
The improvement in activity came alongside increased price pressures on manufacturing companies. The suppliers’ raw materials and input prices index rose to 82.6 in October, from 78.3 in September, its highest reading in more than four years. “Rising cost pressure is challenging the margins of industrial companies,” said Jörgen Kennemar, an analyst at Swedbank. The statement added that the risk was that the increases would be passed on to producer and consumer prices. October’s data therefore combined a higher activity reading with a clear rise in the input cost index.
The purchasing managers’ index comes amid mixed Swedish economic data for the third quarter. Gross domestic product contracted 0.7% in September from the previous month, while growing 0.4% in the third quarter from the previous quarter, according to preliminary data from Statistics Sweden. An economist at the agency said growth for the quarter as a whole was driven by the strong increase in August, despite September’s contraction. On an annual basis, GDP rose 2.8% in the third quarter from the same period a year earlier, according to the calendar-adjusted preliminary reading. Full national accounts for the quarter are scheduled for release on November 27.
Sweden’s central bank kept its interest rate at 1.75% in its September decision. The bank said at the time that GDP had grown faster than expected and the Swedish economy was approaching normal conditions, while measured inflation remained low. The bank said stronger economic activity, a weaker krona and higher energy prices meant inflation was expected to rise. The next interest rate decision is due on November 4. The next manufacturing purchasing managers’ index reading is scheduled for release on December 1, 2026.
The October PMI survey was conducted between October 12 and 28, the period reflected in the published reading. The monthly methodology gathers purchasing managers’ views on manufacturing activity, with a result above 50 signaling growth and one below it signaling contraction. The comparison of October with September shows the index rising alongside increases in raw materials and input prices indicators. The data also recorded slight declines in the new orders and delivery times indexes from elevated levels. Markets are awaiting the next manufacturing reading on its scheduled release date in December.