Switzerland: Services and manufacturing PMIs pick up in December
The manufacturing Purchasing Managers’ Index (PMI) produced by Credit Suisse and procure.ch rose from 55.2 in November to 58.0 in December, the highest reading in over two years and moving further above the 50-threshold signaling expansion in the manufacturing sector. The increase was due to faster growth in output and a rebound in employment, amid strong demand from Asia.
Meanwhile, the services sector deteriorated at a softer rate, with the PMI rising from 48.0 in November to 49.2 in December, supported by faster growth in business activity and a recovery in new orders. However, the PMI survey was conducted from 16–18 December, and thus does not reflect the impact of the nationwide restrictions introduced by the federal government from 22 December.
Taken together, PMI readings for the fourth quarter suggest the externally oriented manufacturing sector performed much better than the more domestically focused services sector, which was weighed on by tighter Covid-19 restrictions. The economy as a whole likely contracted in quarter-on-quarter terms in Q4, albeit at a much milder pace than in the spring.