Switzerland: PMI surges to over six-year high in July
August 2, 2017
The manufacturing Purchasing Managers’ Index (PMI) produced by Credit Suisse and procure.ch rose to 60.9 points in July, up from June’s 60.1 points. Once again, the result sits well above the critical 50-point threshold that separates expansion from contraction in manufacturing output, and exceeds the series’ long-term average.
Behind the upturn was a sturdy expansion in order books that spurred stronger dynamics in the Swiss industrial sector and led to an acceleration in activity. Backlog of orders increased once again and stocks of finished goods rose marginally. Input purchases shot up despite the first upward movement in prices recorded this year, resulting from a combination of an uptick in oil prices, higher demand for goods amid an upsurge in the global economy’s recovery and a depreciation of the franc vis-à-vis the euro. Meanwhile, employment prospects moderated in July from June’s six-year high, but remained above the growth threshold and long-term average.
Author: Nihad Ahmed, Economist