Swiss housing on the lake with mountains in switzerland

Switzerland PMI May 2019

Switzerland: Manufacturing PMI remains mired in contractionary territory in May; services PMI ticks down

The manufacturing Purchasing Managers’ Index (PMI) produced by Credit Suisse and inched up to 48.6 points in May from a near four-year low of 48.5 points in April. Consequently, the index remained below the 50-point threshold that separates expansion from contraction in the manufacturing sector.

Operating conditions in the Swiss manufacturing sector continued to deteriorate in May as new business inflows and production continued to decline, albeit at a softer pace than in April. Moreover, employment fell in May and firms’ purchasing activity slowed slightly. Meanwhile, supplier delivery times were broadly stable in the month, whereas stocks of raw materials rose higher in May and inventories of finished goods were broadly unchanged.

Turning to the services sector, the PMI dropped to 51.2 points in May from April’s near one-year high of 61.8 points. The drop was primarily due to slightly weaker commercial activity. Nevertheless, new business orders picked up in the month, and firms continued to hire new staff, albeit at a weaker rate. Slower activity allowed companies to work through backlogs of work.

Commenting on the services sector’s labor market, Claude Maurer, Head of Swiss Macro Analysis & Strategy, noted: “The still favorable labor market situation in the services sector reflects a certain degree of business confidence and forms a solid basis for a sustainable economic upswing in Switzerland.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest