The 0.2 percent contraction in seasonally adjusted terms from the second quarter came as a surprise for analysts, who had expected zero growth, according to a survey by SME Direkt.
The drop in consumer spending "... probably largely reflected a sharp drop in new car sales, after an especially strong (second quarter), due to higher taxes on petrol and diesel cars" which kicked in at the start of the third quarter, said analysts at Capital Economics.
They said the economy would probably bounce back in the last three months of the year.
The Swedish economy grew by 1.6 percent in July through September compared to the same period in 2017.
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