Economy Manufacturing PMI falls further in May
Export-oriented Swiss industry became even more pessimistic in May. By contrast, the mood among domestically oriented service providers has recently improved again.
02.06.2025, 09:54
SDA
The Purchasing Managers' Index (PMI) for industry fell by a significant 3.7 points to 42.1 points in May. This is the lowest level since December 2023, as announced by the major bank UBS and the purchasing trade association procure.ch on Monday.
With values below 50 points, the companies surveyed expect economic activity to shrink overall. The industrial PMI failed to reach the growth threshold for the 29th month in a row.
The decline in the PMI in May is reflected in several sub-sectors: order backlogs and production fell significantly, while employment fell to its lowest level for five years. The trend towards destocking has also continued.
Fears of protectionism fall
Following a sharp rise in fears of protectionism in April, fears eased somewhat in May. According to the survey, only 35% of the industrial companies surveyed stated that they had been affected by new protectionist measures in the past twelve months. And only just over half of the companies still expect more protectionist measures in the future.
However, the easing of protectionist concerns should be viewed with caution, notes UBS. This is because most purchasing managers would have filled out the questionnaire before Donald Trump's new tariff threat against the European Union.
Service sector in a better position
While industry is under pressure, the services sector remains stable. The corresponding PMI rose by 3.9 to 56.3 points. This puts it back at the same level as at the beginning of the year.
Business activity in particular gained momentum among service providers, with the corresponding component rising to its highest level since June 2022. One fly in the ointment, however: the employment component fell below the growth threshold again.
