Switzerland: Manufacturing PMI falls in August but remains elevated; services PMI ticks up
The Credit Suisse/procure.ch Manufacturing Purchasing Managers’ Index (PMI) came in at 67.7 in August, down from July’s record high of 71.1. As such, the index remained entrenched well above the 50-threshold, but signaled a softer improvement in business conditions from the previous month. The slowdown was driven by softer—albeit still rapid—growth in output, new orders and purchasing activity. Employment growth sped up, while input price inflation eased slightly but stayed elevated.
Meanwhile, the Services PMI ticked up from 60.8 to 61.3, aided by faster growth in business activity, new orders and employment, while both input and sales price pressures eased somewhat. Taken together, the readings paint a positive picture of the economy midway through Q2 notwithstanding higher Covid-19 cases, and suggested some ebbing of supply chain pressures which had grown acute in recent months.