Switzerland: Manufacturing PMI tumbles to over two-year low in January
The manufacturing Purchasing Managers’ Index (PMI) produced by Credit Suisse and procure.ch fell to 54.3 points in January from a revised 57.5 points in December (previously reported: 57.8 points), coming in slightly below the index’s long-term average of 55.0 points. January’s result marked the lowest reading since August 2016. Nevertheless, the index remains well above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
The weaker headline print in January came primarily on the back of softer production, while new orders were relatively stable in the month. Moreover, employment grew at a more moderate pace, but remained robust regardless. Meanwhile, delivery times shortened noticeably, signaling higher capacity utilization. In terms of inventory, stocks of raw materials rose at a softer pace in the month, whereas finished-goods inventories fell, pointing to stronger-than-expected demand.