Switzerland: Manufacturing PMI hits record high in July; Services PMI pulls back but remains elevated
August 2, 2021
The Credit Suisse/procure.ch Manufacturing Purchasing Managers' Index (PMI) came in at 71.1 in July, up from June's 66.7. July's result marked the strongest reading on record. As a result, the index moved further above the 50-threshold, signaling a faster improvement in business conditions compared to the previous month. July’s increase was driven by faster growth in output, orders and employment, while delivery times lengthened at a faster pace and input price inflation remained elevated.
Meanwhile, the Services PMI came in at 60.8 in July, compared to 64.4 in June, amid slowdowns in growth of business activity, new orders and employment. Taken together, the PMI readings suggest a strong start to the third quarter, as the economy is buoyed by the recent loosening of Covid-19 restrictions.
Author: Oliver Reynolds, Economist