Switzerland: Manufacturing and services PMIs improve in May
Latest reading: The UBS/procure.ch Manufacturing Purchasing Managers’ Index (PMI) rose to 57.3 in May from 54.5 in April, remaining above the 50-point no-change threshold for a third consecutive month and reaching its highest level in over three years. This signaled a continued strengthening of momentum in the manufacturing sector, despite ongoing tensions in the Middle East and volatility in oil markets.
The output and order-backlog components strengthened further, with output reaching its highest level since July 2022 and order backlogs their highest level since April 2022. Employment broadly stabilized. Supplier delivery times and purchase prices continued to point to significant upward pressure. Companies cited higher prices for petroleum-based products such as plastics, linked to the geopolitical situation in the Middle East, while electronic components and industrial metals were also reported to be more expensive and, in some cases, available only with delays.
The Services PMI rebounded to 56.0 in May from 54.8 in April, remaining firmly in expansionary territory. The increase was driven by a strong improvement in business activity, which rose to 63.5, its highest reading in 52 months. New orders and order backlogs also improved, while purchase and sale prices rose significantly. The employment component was the main weak spot.