Switzerland: Services sector PMI falls to fresh record low in April; manufacturing PMI drops further
May 4, 2020
The manufacturing Purchasing Managers’ Index (PMI) produced by Credit Suisse and procure.ch fell to 40.7 in April from 43.7 in March. April’s PMI marked the lowest level since May 2009. Consequently, the index remained entrenched below the 50-threshold that separates contraction from expansion in the manufacturing sector.
Output fell to a historic low in April, while labor market conditions worsened, with approximately 59% of the companies participating in the survey having already applied for the short-time work program. Meanwhile, backlogs of work fell further in the month. Supplier delivery times lengthened notably again in April, and Procure.ch noted that the manufacturing PMI would have hit a new record low if it were not for longer delivery times.
The services sector suffered another blow in April amid the lockdown as the PMI fell to a fresh record low of 20.1 in April from 28.1 in March. Business activity and new orders declined further, and in turn employment demand also fell. Responses from panelists suggest that one in every three services-sector employee is now on short-time working.
Author: Lindsey Ice, Economist