Bankruptcies in Sweden increased for the seventh consecutive month in February with retailers squeezed by declining household consumption and the construction industry struggling in the wake of an ongoing housing market rout.

Sweden’s economy is buckling under the weight of soaring consumer prices and increased borrowing costs. A recession may already be under way as indebted households, whose mortgage rates are typically fixed for short periods, tighten purse strings and a plunge in housing prices is rapidly reducing investments in new dwellings.