Economy: prospects remain bleak for Swiss industry

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The industrial purchasing managers index (PMI) rose 1.7 points to 44.9 points in June, as Credit Suisse announced on Monday. At the same time, falling orders mean that growth in the industrial sector is not expected anytime soon.

A full 38 percent of companies reported that their order books were less full. The communique stated that the “production” subcomponent has risen sharply again after the previous month’s decline. But companies could at best keep their production volumes tight.

Additionally, the previously strong employment situation has apparently been marred. Firms that increase staff and companies that increase staff are now balanced.

At least the purchasing situation is positive: one-third of companies report shorter delivery times and more than one-fifth lower purchase prices.

On the other hand, the services PMI, focused mostly on domestic consumption, weakened in June. It fell 3.0 points to 49.6 points, slightly below the 50-point growth threshold for the first time since the end of 2022.

CS economists explained that despite the slowdown in growth, inflationary pressure in particular is not diminishing as fast as in the industry. So this part of inflation proves to be permanent.

On the other hand, the situation in the labor market is better than in industry. About one in five companies in the service industry are expanding their workforce. (SDA)

Source :Blick