Swedish factory demand weakened sharply in June, with industrial orders falling 1.4% from May, confounding economists who had expected a 5.7% rebound. Orders were 2.4% lower than a year earlier, also missing forecasts for a modest increase, according to data published Friday by Statistics Sweden. The production side offered mixed signals. Industrial output rose 5.0% year-on-year, accelerating from May’s 3.0% gain but coming in well below the 12.8% expansion analysts had projected. Service-sector production grew 1.2%, down from 1.4% the previous month and less than the 3.2% expected. Household spending provided little support to the economy. Consumption dropped 1.2% on the month and was up just 0.6% from a year earlier, undershooting estimates for increases of 0.6% and 2.1%, respectively. Separate figures showed Swedish apartment prices fell in July at the fastest pace since 2022, underscoring softness in domestic demand as higher interest rates continue to weigh on consumers and the housing market.