Switzerland: Manufacturing and services PMIs remain robust in June
Latest reading: The UBS/procure.ch Manufacturing Purchasing Managers’ Index (PMI) fell to 54.3 in June from 57.3 in May, but remained well above the 50-point no-change threshold. The indicator has now stayed above the 50-point mark since March, signaling that manufacturing remained on a growth path despite some loss of momentum. Production continued to expand, with the output component holding at one of its highest readings in more than four years. Order backlogs also continued to rise, although less strongly than in May. Employment was broadly stable, with the component just below the growth threshold. Supplier delivery times and purchase prices continued to point to upward pressure, but the momentum slowed. Petroleum-based products such as plastics again featured prominently in reported price changes, but unlike in May, some respondents reported falling prices in June amid a de-escalation in the Middle East and lower oil prices.
The Services PMI climbed to 59.8 in June from 56.0 in May, reaching its highest level since March 2022 and remaining firmly in expansionary territory. The increase was broad-based: business activity growth edged up, while readings for new orders and order backlogs rose sharply. This was the first time since early 2022 that all three major services components exceeded the expansion threshold simultaneously. Purchase and sale prices remained elevated but eased from May, while employment remained the main weak spot.