Key Takeaways
- Sweden's industrial orders continued to contract in June 2025, with a year-on-year decline of 2.4%, though this was an improvement from the previous month's 4.1% fall.
- On a month-over-month basis, industrial orders dropped by 1.4% in June, significantly missing the estimated 5.7% growth and worsening from the prior month's 3.7% decline.
- This sustained contraction in orders indicates ongoing weakness in the Swedish industrial sector, despite some signs of rebound in broader industrial production and manufacturing PMI in recent months.
Sweden's industrial sector faced continued headwinds in June 2025, as new data revealed a persistent contraction in industrial orders. On a year-over-year basis, industrial orders declined by 2.4%, a moderation from the 4.1% fall recorded in the previous month. This suggests a slower pace of decline but still indicates a challenging environment for Swedish manufacturers.
However, the month-over-month figures painted a more concerning picture. Industrial orders contracted by 1.4% in June, a significant miss against the market's expectation of a 5.7% increase. This also represents a worsening from the 3.7% decline observed in the preceding month, highlighting deteriorating short-term demand.
The latest figures for industrial orders contrast with some of the broader industrial activity data seen in recent months. Sweden's industrial production, which measures the output of businesses in the industrial sector, increased by 5% year-on-year in May 2025, following a rebound in April. This growth was primarily driven by manufacturing, despite a decline in mining and quarrying output.
Furthermore, the Purchasing Managers' Index (PMI) for Swedish manufacturing, a key indicator of sector health, showed mixed signals. After falling to 51.9 in June 2025, indicating a loss of momentum and a drop in order intake below the neutral 50 threshold to 49, the PMI rebounded sharply to 54.2 in July 2025. The July increase marked the highest reading since May 2022, primarily driven by a significant rise in incoming orders.
Despite the positive turn in the July PMI, the June industrial orders data underscores lingering fragility in the Swedish economy. Analysts continue to monitor global trade policies and domestic demand, which have been noted as significant factors impacting the nation's economic recovery. The Swedish Export Credit Corporation has previously warned of potential declines in U.S.-bound exports, posing a risk to export-dependent firms like Volvo ([VOLV B](/stock/VOLV B)) and Ericsson ([ERIC B](/stock/ERIC B)).
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.