Switzerland: Manufacturing and Services PMIs fall in July
The Credit Suisse/procure.ch Manufacturing Purchasing Managers’ Index (PMI) came in at 58.0 in July, down from June’s 59.1. July’s result marked the worst reading since November 2020. As such, the index remained entrenched above the 50.0 no-change threshold, signaling a softer, albeit still strong, improvement in manufacturing business conditions from the previous month. The slowdown was due to softer growth in new orders, purchasing activity and employment.
Meanwhile, the Services PMI clocked in at 55.2 in July, down from June’s 59.0, on weaker expansions in business activity, new orders and employment. Positively, price pressures eased notably across the private sector, likely on the back of tighter monetary policy, a strong franc and the recent pullback in global commodity prices. Moreover, Swiss PMI readings compare favorably to those of European peers: the Eurozone flash composite PMI (covering both manufacturing and services) was below 50 in August for instance.