Switzerland: Manufacturing and Services PMIs fall in January
The Credit Suisse/procure.ch Manufacturing Purchasing Managers’ Index (PMI) fell to 63.8 in January from December’s 64.2. Consequently, the index remained entrenched well above the 50-threshold, signaling a softer, albeit still strong, improvement in business conditions from the previous month. The reading was driven by slightly weaker growth in new orders and output. Many firms also reported that worker absences due to Covid-19 isolation requirements were expected to hit production. However, input price inflation eased, while employment growth accelerated. Encouragingly, the subindex for suppliers’ delivery times fell for the fourth straight month, hinting at a gradual normalization of supply chains.
Meanwhile, the Services PMI clocked in at 56.4 in January, down from December’s 59.9, amid notably weaker expansions in business activity and new orders, likely driven in part by the Omicron wave. However, as in the manufacturing sector, input price inflation eased somewhat, while employment growth picked up.