Switzerland: Manufacturing PMI falls to an over one-year low in October

The manufacturing Purchasing Managers’ Index (PMI) produced by Credit Suisse and procure.ch fell to an over one-year low of 57.4 points in October from 59.7 points in September. Nonetheless, the indicator remains comfortably above the 50-point threshold that separates expansion from contraction in manufacturing output.

The deterioration in operating conditions in October was primarily due to a sharp downturn in output, which fell to a near one-and-a-half year low. Moreover, higher inventories of both finished goods and raw materials, and a slowdown in job creation also point to weaker demand dynamics. Meanwhile, new order growth was relatively stable in October.

Switzerland Fixed Investment Forecast

FocusEconomics Consensus Forecast panelists expect fixed investment to increase 2.0% in 2019, which is up 0.1 percentage points from last month’s forecast, and growing 1.7% in 2020.