Switzerland: Manufacturing and services PMIs remain upbeat in July
Latest reading: The UBS/procure.ch Manufacturing Purchasing Managers’ Index (PMI) fell to 53.2 in July from 54.3 in June, but remained above the 50-point no-change threshold for a fifth consecutive month. The indicator therefore continued to signal expansion in Swiss manufacturing, despite a further loss of momentum. Production growth moderated, with the output component declining by 2.8 points to 54.2. Order backlogs were broadly stable at around 53 points, indicating that order volumes continued to recover after a prolonged period of decline. Employment remained a weak spot, with the component falling to 47.7 and staying below the growth threshold. Supplier delivery times and purchase prices pointed to intensifying upward pressure, rising to 62.9 and 74.2, respectively. Purchasing managers again reported higher prices for petroleum-based products, consistent with continued strain on global supply chains.
The Services PMI climbed to 63.9 in July from 59.8 in June, reaching its highest level since August 2017 and remaining firmly in expansionary territory. The increase was broad-based: business activity and new orders both rose to 69.7, their highest readings since August 2017 and the second-highest on record, while order backlogs increased to 62.3. Purchase price pressures eased but remained elevated, whereas sale price pressures edged higher. Employment also improved markedly, rising by 4.6 points to 51.5 and moving back above the growth threshold.