Switzerland: Manufacturing and services PMIs are positive in April
Latest reading: The UBS/procure.ch Manufacturing Purchasing Managers’ Index (PMI) rose to 54.5 in April from 53.3 in March, remaining above the 50-point no-change threshold for a second consecutive month and signaling continued expansion in the manufacturing sector. The improvement came despite the ongoing Middle East conflict. The output and order-backlog components strengthened further, while employment also contributed positively though remained below the expansion threshold. Supplier delivery times changed only slightly after March’s significant increase but continued to point to markedly longer delivery times, especially for plastics, semiconductors, microchips, and magnets. Purchase prices rose further to 82.8, with companies citing higher plastics prices linked to the Middle East conflict and higher oil prices, as well as shortages in electronic components.
The Services PMI eased to 54.8 in April from 57.2 in March, but remained firmly in expansionary territory. The average reading of around 55 between January and April continued to indicate a robust services sector. Business activity remained very strong, although it declined from March’s level. New orders and order backlogs remained above 50, respectively, but improved less strongly than in the previous month. Finally, the employment component fell.