Swedish businesses signal price increases amid rising confidence

According to the latest National Institute of Economic Research barometer, Swedish companies are planning significant price increases over the next three months. The net total for business price plans rose from 22 in September to 24 in October, which is substantially higher than the historical average of 11.

Business sentiment is also improving, with the confidence indicator rising for the seventh consecutive month. This marks the strongest position since May 2022, driven largely by the manufacturing industry, which has increased production plans and expressed optimism regarding order stocks. The service sector also reported an increase in its indicator, while the retail sector maintained a very strong sentiment level.

In contrast to the business sector, household confidence has declined. The household confidence indicator fell from 102.3 to 94.3 in October, reflecting growing pessimism regarding personal finances and the broader Swedish economy.