The Purchasing Managers’ Index (PMI) for Swedish manufacturing rose to 56.3 in March from 56.0 in February and remains above its historical average for the ninth consecutive month. This means that the PMI was at a higher level in the first quarter compared with the fourth quarter of 2025. The PMI for the services sector also rose sharply in March, following a weak reading in February.
The composite Purchasing Managers' Index (PMI-Composite) rose to 55.9 in March from 50.8 in February, ending up above its historical average of 55.1.
“The economic recovery gained new momentum in March following a weak showing in February, but the risk of further setbacks cannot be ruled out as long as the war in the Middle East continues,” says Jörgen Kennemar, head of purchasing managers’ index analysis at Swedbank, and
Swedish industry continues to show robust growth, but the decline in new orders and signs of supply disruptions could pose challenges for Swedish industry if the war in the Middle East drags on, Kennemar warns.
The rise in the Swedish manufacturing PMI was driven by the sub-index for suppliers’ delivery times, followed by employment and inventory purchases, while new orders accounted for the largest negative contribution in 20 months. The index for suppliers’ raw material and input prices rose by 9.6 index points in March to 67.2 compared with February, marking the highest index level since October 2022.
“Inflationary pressure in the industrial sector intensified in March as global energy prices skyrocketed due to the war in the Middle East. In the long run, this will fuel inflation, which increases the pressure on the Riksbank,” says Jörgen Kennemar
The Services PMI also rose in March and is back in positive territory. The Purchasing Managers’ Index for the private services sector (Services PMI) increased by 7.0 index points in March to 55.7, following a weak February reading of 48.7. However, looking at the first quarter as a whole, there was a decline of 4.0 index points compared with the fourth quarter of 2025.
– Although the service sector is in a growth phase, there are signs that the recovery has slowed in the first quarter following last year’s strong rebound. The uncertain global environment, rising costs, and higher interest rates pose increased challenges for the service sector.
The sub-indices for new orders and business volume accounted for the largest positive contributions to the rise in the Services PMI, followed by delivery times. The decline in employment continues, remaining below the 50-point mark for the sixth consecutive month, although the index rose in March. The index for raw material and input prices stood at 64.0 in March, compared with 61.6 in February, and is above its historical average (58.1) for the fourth consecutive month.
