Switzerland: Manufacturing PMI plunges into contractionary territory in April; services PMI rebounds to a nearly one-year high
The manufacturing Purchasing Managers’ Index (PMI) produced by Credit Suisse and procure.ch tumbled to a nearly four-year low of 48.5 points in April from 50.3 points in March. Consequently, the index now lies below the 50-point threshold that separates expansion from contraction in the manufacturing sector for the first time since 2015 as weakening European demand continues to weigh on the Swiss manufacturing sector.
April’s decline was primarily due to a sharp fall in new worker orders and a drop in production, both of which lie in contractionary territory. Meanwhile, employment slowed notably in April, although it continued to grow. Stocks of raw materials and inventories of finished goods both ticked up in the month, while manufacturers’ purchasing activity was stable in the month.
Turning to the services sector, the PMI rebounded to a nearly one-year high in April after falling to an over two-year low in March. The surge came on the back of a sharp rise in order books and robust commercial activity. Moreover, new business inflows increased in the month, while job creation grew at a quicker clip.