The economy Swiss industry remains in the doldrums

The recovery in Swiss industry is a long time coming. The Purchasing Managers' Index (PMI), which is considered an important sentiment indicator, fell in June and thus remains in the basement. Things are looking somewhat better in the services sector.

The seasonally adjusted PMI for industry fell from 46.4 to 43.9 points in June, remaining below the growth threshold of 50 points for the eighteenth month in a row.

In the PMI, which is calculated by the major bank UBS together with the Swiss purchasing and supply management association Procure, values above 50 points indicate growth and values below 50 points indicate a decline in the economy. The last time the PMI was in positive territory was in December 2022.

No rapid recovery in sight

Only during the dot-com recession did the index remain below the growth threshold for longer, UBS commented on the current value. However, the index levels at that time tended to be higher than in the current crisis.

According to the experts, a rapid recovery is not in sight. In their opinion, an important prerequisite would be a recovery in the eurozone. However, the first estimate of the industrial PMI in the eurozone for June shows that it is likely to have fallen to its lowest level in 2024.

Services back in positive territory

The mood in the service sector has brightened somewhat in Germany. The services PMI rose by 3.2 points to 52.0 points. As a result, it managed to jump above the growth threshold.

According to the experts at UBS, this index is characterized by high volatility. However, a look at the last few months confirms that the sector is on a moderate growth path.