In December, Sweden’s manufacturing Purchasing Managers’ Index (PMI) increased to 55.3, up from 54.6 the month before. This shows that the manufacturing sector is improving. A PMI above 50 usually means the sector is expanding, while a reading below 50 indicates it is shrinking. The rise in the PMI points to ongoing positive growth in Sweden’s manufacturing industry.

Factors That Contributed to the PMI Increase

Several factors likely contributed to this increase, including higher production levels, more new orders, and better delivery times from suppliers. Employment levels in the sector may also improve. Sweden’s manufacturing sector remains strong, showing stability and potential for growth. This positive PMI change can affect economic forecasts and business strategies. Overall, the PMI data is useful for understanding the economic health and future outlook of Sweden’s manufacturing sector. It serves as an important economic indicator of business conditions and expectations. Sweden’s manufacturing sector ended 2025 on a high note, with the PMI rising to 55.3. This means factory activity is not just growing but doing so at a quicker pace, signaling economic strength as we enter the new year.

Outlook for the Swedish Krona and Interest Rates

This strong data should help support the Swedish Krona in the coming weeks. A healthy economy lessens the Riksbank’s need to consider lowering interest rates, making the currency more attractive. Traders might see this as a chance to invest in SEK strength, possibly using call options against the Euro (EUR/SEK puts). This manufacturing report is especially important since Sweden’s CPIF inflation during the fourth quarter of 2025 averaged 2.3%, staying above the central bank’s 2% target. Economic growth combined with persistent inflation suggests that monetary policy will likely stay tight. This makes interest rate futures that bet against a near-term rate cut more appealing. For the stock market, this is clearly good news for companies on the OMX Stockholm 30 index. Many of these companies are large manufacturers that directly benefit from strong production and new orders. We can expect this positive sentiment to increase interest in call options on the index, as investors anticipate strong Q4 2025 earnings reports. Looking back at the economic rebound in 2021 from our current viewpoint in 2025, we noticed a similar trend where strong PMI numbers led to a rally in Swedish equities that lasted several months. This historical pattern suggests the current data could indicate ongoing momentum. Traders may use this precedent to create longer-term bullish positions with options that have later expiration dates. Create your live VT Markets account and start trading now.

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