Sveriges Riksbank has published its August Business Survey, showing that large Swedish companies’ assessment of economic conditions rose above its historical average for the first time since September 2022. The survey indicator reached its highest level since February 2022 as demand strengthened, investment plans expanded and concerns that the war in the Middle East would delay the recovery receded. Retail and hospitality companies reported strong summer sales and improving underlying household demand, while defence, data centers and the energy transition drove growth among business-facing companies. Higher fuel, transport, materials and purchasing costs are already affecting business-facing companies, while retail and hospitality companies expect delayed cost effects toward year-end. Business-facing companies are raising prices, but most respondents do not plan larger or more frequent increases than usual. Pricing plans in retail and hospitality have declined overall because non-durable goods companies do not intend to raise prices. Fewer companies plan workforce reductions, although they remain focused on efficiency and cautious about replacing departing staff.