In February 2025, Sweden’s industrial production exhibited a modest rebound, with a seasonally adjusted monthly increase of 0.4%, following a significant 8.3% decline in January. However, on an annual basis, industrial output contracted by 0.7%, marking the second consecutive month of year-over-year decline. Explore Sweden Industrial Production Report for February 2025, highlighting key sector performance, monthly growth trends, and economic outlook insights.
Sweden’s Industrial Report: Sectoral Performance
- Manufacturing: The manufacturing sector experienced a 0.7% year-over-year decline in output. Notably, the motor vehicles, trailers, and semi-trailers industry faced a substantial contraction of 25.4% compared to February 2024.
- Mining and Quarrying: Output in this sector increased by 2.0% year-over-year, a deceleration from the 21.9% growth observed in January.
- Utilities: Production in electricity, gas, steam, and hot water supply declined by 3.5% year-over-year, indicating ongoing challenges in the energy sector.
Orders and Turnover
Total orders in industry decreased by 6.2% in February 2025 compared to January, in seasonally adjusted figures. Both export and domestic markets contributed to this decline, with export orders falling by 8.1% and domestic orders by 2.8%.
Economic Context
The broader Swedish economy contracted by 1.5% month-over-month in February, following a 0.4% decline in January. This downturn was primarily driven by reduced production in service-producing industries and the general government sector.
Outlook
While the monthly uptick in industrial production offers a glimmer of hope, the persistent annual decline and decreasing orders underscore the fragility of Sweden’s industrial report sector. Ongoing challenges in key industries, coupled with broader economic contractions, suggest that sustained recovery may require targeted policy interventions and favorable global economic conditions.
