Switzerland: PMI soars to an over six-year high in June
July 3, 2017
In June, the manufacturing Purchasing Managers’ Index (PMI) produced by Credit Suisse and procure.ch came in at 60.1 points, a substantial markup from May’s 55.6 points and the highest level since February 2011. The result sits far above the critical 50-point threshold that indicates an expansion in the manufacturing sector. Notably, a PMI above 60 points has only been achieved during periods of industrial boom.
The Swiss industrial sector recorded robust growth in June, with a more broad-based expansion in output than observed in the previous month and the output subindex rose to the highest level since July 2010. Delivery times increased, indicating that manufacturers are running closer to full capacity, and a renewed rise in backlog of orders suggests that a further increase in output could be on the horizon. However, stocks of finished goods increased only marginally and companies’ purchases decelerated in June. Nevertheless, improvements in the labor market are well underway as employment growth surged to the highest level since April 2011.
Author: Nihad Ahmed, Economist