2026-08-28
Economic Tendency Survey August 2026
Consumer sentiment returns to a normal level
The Economic Tendency Indicator increased in August for the fourth consecutive month and now points to a stronger-than-normal sentiment in the Swedish economy. The increase in August was driven largely by improved sentiment in the services sector. Consumer confidence strengthened in August and is now at a normal level for the first time since November 2024. A larger-than-normal share of firms in the business sector expect to raise prices over the next three months.
Price plans increased in manufacturing and construction, while marginal declines were recorded in the retail and services sectors. Manufacturing is the only sector in which price plans remain significantly above normal. Price plans measure the difference between the proportion of firms expecting to raise prices and the proportion expecting to lower them. They therefore do not measure the magnitude of the expected price increases.
The manufacturing confidence indicator declined marginally in August. Firms' assessments of current order books and stocks of finished goods contributed to the decrease, whereas expectations regarding production volumes over the next three months strengthened.
The confidence indicator for the services sector increased in August and points to stronger-than-normal sentiment. The largest contribution to the increase came from the question concerning the development of firms' business activity. The questions regarding demand for firms' services, both over the past three months and expectations for the coming three months, showed very little change and remain slightly stronger than normal.
The confidence indicator for construction declined in August but continues to indicate a normal level of sentiment. Both assessments of current order books and employment plans weakened.
The retail trade confidence indicator strengthened further in August and is now at its highest level since early 2022. All retail subsectors are reporting stronger or much stronger sentiment than normal, with the most positive signals coming from the durable consumer goods trade.
The increase in the consumer confidence indicator was driven by the questions concerning perceptions of the Swedish economy, both over the past twelve months and expectations for the economy over the next twelve months, which became more positive. By contrast, views on whether it is currently the right time to make major purchases weakened marginally. The responses to both questions concerning consumers' own financial situation, covering both the previous twelve months and expectations for the coming twelve months, were unchanged. Assessments of personal financial circumstances were at a normal level, while expectations for the next twelve months remained somewhat more negative than normal.
