Switzerland: Manufacturing and services PMIs rise in August
September 1, 2020
The manufacturing Purchasing Managers’ Index (PMI) produced by Credit Suisse and procure.ch rose from 49.2 in July to 51.8 in August. August’s reading marked the best result since February 2019, with the PMI moving back above the 50-threshold that separates contraction from expansion in the manufacturing sector. The improvement was spearheaded by faster output growth and a rebound in new orders. Less positively, employment continued to decline.
The services sector PMI ticked up from 51.6 in July to 51.7 in August, on the back of an increase in new orders. However, business activity growth softened, while employment fell. Taken together, the PMI data suggests the economic recovery is well on track in Q3, after Q2’s record GDP fall.
Author: Oliver Reynolds, Economist