Switzerland: PMI eases in July
August 2, 2016
In July, the manufacturing Purchasing Managers’ Index (PMI) produced by Credit Suisse and procure.ch came in at 50.1 points, which was below June’s 51.6 points. The index is now just a tick above the 50-threshold that indicates an expansion in business activity in the manufacturing sector. The index has been above 50 since December of last year.
Looking at the sub-indices, the tendency of firms’ responses was clearly downwards. Overall output decreased in July although it is still in expansionary territory. The backlog of orders, stocks of purchases as well as the employment subcomponent deteriorated notably in July. At the same time, stocks of finished goods increased significantly. Credit Suisse stated that, “it is noticeable that stocks of finished goods were significantly increased in July. This could be a sign that demand was surprisingly weak and the ongoing comparatively lively production (the "production" sub-index once again closed above the growth threshold at 53.6 points) was not entirely matched by corresponding sales.”