Switzerland: Manufacturing and services PMIs in contractionary terrain in November
Latest reading: The UBS/procure.ch Manufacturing Purchasing Managers’ Index (PMI) came in at 49.7 in November, up from 48.2 in October. However, the index remained below the 50.0 no-change threshold, signaling a continued deterioration in manufacturing sector operating conditions from the previous month.
Readings for output, employment, purchasing activity and order volumes were in contractionary territory in November. Companies likely felt the weight of the additional 39% tariffs imposed by the U.S. on Swiss exports in early August. However, in the PMI survey, the share of companies expecting more protectionism over the next year tumbled thanks to the recent deal to reduce U.S. tariffs from 39% to 15%, boding well for the manufacturing sector going forward.
The Services PMI came in at 45.3 in November, down from 47.8 in October and below the 50.0 no-change threshold. After a strong start to the year, services activity has appeared to languish in recent months.