Switzerland: Manufacturing and services PMIs improve in March
Latest reading: The UBS/procure.ch Manufacturing Purchasing Managers’ Index (PMI) rose sharply to 53.3 in March from 47.4 in February, crossing above the 50-point no-change threshold for the first time in over three years and signaling a return to expansion in the manufacturing sector. The improvement was broad-based, with the output component moving back above 50 and the backlog of orders increasing markedly, indicating a strengthening in demand conditions. However, the employment component declined. At the same time, supplier delivery times and purchase prices increased significantly, partly reflecting supply chain disruptions in the Middle East, while inventories of both purchases and finished goods rose.
The Services PMI strengthened further, rising to 57.2 in March from 54.2 in February, remaining firmly in expansionary territory and marking the fourth straight monthly increase. The improvement was driven by robust business activity and a continued recovery in demand, with new orders and order backlogs increasing. The employment component also improved.