Switzerland: Manufacturing and services PMIs fall back in October as second coronavirus wave hits
The manufacturing Purchasing Managers’ Index (PMI) produced by Credit Suisse and procure.ch fell from 53.1 in September to 52.3 in October. However, the PMI was still above the 50-threshold signaling expansion in the manufacturing sector. The softer improvement was due to slower growth in output and new orders, and a sharper contraction in employment.
The services sector decelerated more sharply, with the PMI falling from 55.1 in September to 50.4 in October, amid much weaker growth in new orders and business activity.
Taken together, the PMI readings suggest the economy lost ground early in Q4, and the slowdown will be more pronounced in the remainder of the quarter, due to additional restrictions announced by the federal government and many cantons in late October/early November.