Sweden’s capacity utilisation fell in the fourth quarter.
It moved from -0.2% in the previous period to -0.6% in 4Q.
Sweden’s capacity utilisation fell to -0.6% in the fourth quarter of 2025. This points to a sharper industrial slowdown. It also supports the cooling trend seen at the end of last year. In simple terms, factories and production sites ran at lower activity levels than before.
This weaker backdrop increases pressure on the Riksbank to consider rate cuts in the coming months to support growth. Inflation data for January 2026 also showed further easing. That gives the central bank more room to focus less on inflation and more on activity. As a result, policymakers may adopt a more dovish tone.
For currency traders, this supports a bearish view on the Swedish krona (SEK). The SEK may weaken against major currencies such as the euro and the US dollar. Options strategies, like buying SEK puts or buying calls on EUR/SEK, can be ways to position for this move.
The Swedish stock market, tracked by the OMXS30 index, looks more balanced. Weak activity can hurt earnings, but lower interest rates often support equities. Volatility could rise, so strategies like straddles or strangles may appeal to traders who want to focus on the size of a move rather than the direction.
In fixed income, expectations for rate cuts are supportive for Swedish government bonds. If yields fall, bond prices should rise. This makes bond futures positioning a potential trade idea in the weeks ahead.
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