Switzerland: Manufacturing and services PMIs show divergent trends in February
Latest reading: The UBS/procure.ch Manufacturing Purchasing Managers’ Index (PMI) for Switzerland fell to 47.4 in February from 48.8 in January, remaining below the 50-point no-change threshold and continuing to signal contraction in the manufacturing sector. The latest decline reflected a deterioration in production conditions, with the output component dropping after indicating expansion in January, while order backlogs remained in contractionary territory, extending a prolonged period of weak demand. Although the employment component improved slightly, it still pointed to a challenging labor market for manufacturers. At the same time, purchasing volumes continued to decline and inventory reductions intensified, underscoring ongoing pressure across the sector.
In contrast, the Services PMI remained firmly in expansionary territory. In February, the services PMI rose to 54.2 from 53.8 in January, marking the third consecutive month above the 50 threshold. The improvement was driven primarily by stronger business activity. While new orders and order backlogs edged lower, both indicators remained above the expansion threshold. Meanwhile, the employment component improved to its highest level since April 2025 though still indicated slight contraction.