The economy Swiss industry remains in a low mood
The recovery in Swiss industry is a long time coming. The Purchasing Managers' Index (PMI), which is considered an important sentiment indicator, fell slightly in July and thus remains in the basement. The situation in the service sector has also deteriorated.
02.08.2024, 09:36
SDA
The seasonally adjusted PMI for industry fell from 43.9 to 43.5 points in July, remaining below the growth threshold of 50 points for the nineteenth 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 growth territory was in December 2022.
The Swiss economy is going through a weak phase in the middle of the year, UBS commented on the current value. However, the decline in industrial production in July was primarily due to seasonal effects. Inventories in sales were also assessed somewhat more positively this month than in the previous month of June, it said.
Services also under pressure
The mood in this country has also deteriorated in the services sector. The services PMI fell by 7.3 points to 44.7 points. It thus fell well below the growth threshold again.
According to UBS experts, the services PMI has been unstable of late. Since January, the index has been above the growth threshold four times and below it three times.
Due to the high volatility, the development should be assessed with caution. The three-month average of the value is 48.5 points and thus only slightly below the growth threshold.
