Switzerland: Manufacturing and services PMIs remain healthy in August
Latest reading: The UBS/procure.ch Manufacturing Purchasing Managers’ Index (PMI) rose to 57.1 in August from 53.2 in July, an increase of 3.9 points, and remained above the 50-point no-change threshold for a sixth consecutive month. The indicator therefore continued to signal expansion in Swiss manufacturing. The August reading was the second-highest in more than three years.
Production growth accelerated, with the output component rising by 5.6 points to 59.8. Order backlogs also strengthened, increasing by 4.2 points to 57.5. Employment improved as well, with the component rising by 2.7 points to 50.4 and moving above the growth threshold for the first time since November 2025. Supplier delivery times pointed to intensifying supply pressures, rising by 4.0 points to 66.9, while purchase price pressures eased somewhat but remained elevated, with the corresponding component declining by 4.9 points to 69.3. Purchasing managers reported higher prices for plastics, transport, electronic components and base metals, citing factors including the geopolitical situation in the Middle East and the AI boom.
The Services PMI declined to 58.3 in August from 63.9 in July, but remained firmly in expansionary territory and continued to signal solid growth in the services sector. The moderation was broad-based: business activity fell by 9.1 points to 60.6, while new orders declined by 8.5 points to 61.2 and order backlogs decreased by 2.9 points to 59.3. Despite the declines, all three components remained at levels consistent with solid expansion.
Purchase prices remained elevated at 68.5, while the sale prices component fell more sharply to 58.0, widening the gap between the two measures and potentially pointing to renewed pressure on margins. The employment component eased to 50.3 from 51.5 in July, but remained above the growth threshold for a second consecutive month.