The industrial purchasing managers index (PMI) rose slightly to 54.1 points in December 2022, up 0.2 points, as Credit Suisse announced on Tuesday. The index remained above the 50-point growth threshold for the full 2022. Economists surveyed by the AWP news agency had predicted a slight decline in the 52.0 to 53.5 points range.
Production has lost some momentum, but still points to growth. On the other hand, the decline in the order backlog has come to a standstill. In addition, the situation in the labor market continues to be positive. Only 7 percent of companies are laying off staff, and almost a quarter are increasing their workforce. This should also ensure that the consumer mood does not drop.
The situation is even more relaxed in purchasing. Only 8 percent of companies reported longer delivery times – in the first half of 2022, more than 80 percent of companies repeatedly reported longer delivery times. However, one in three companies still faces higher purchase prices.
The situation is different in the service sector. Confidence in the sector, which is mostly oriented towards domestic consumption, declined by 5.1 points to 48.4 points, even falling below the growth threshold. However, a single monthly value relative to CS should not be over-interpreted, as the services PMI fluctuates more than the industry sector.
In addition to the traditional weakness in December, the order status in particular has clouded. Meanwhile, business activities continue to be in the growth zone.
Also, as in the industry, the situation is slowly returning to normal on the price front. As before, 44 percent of companies report higher purchase prices and 27 percent higher selling prices. This development also indicates that the margins are in a downward trend. Despite these challenges, one in five service companies is hiring, with only 10 percent reducing their workforce.
Another economic barometer from ETH economic research institute KOF rose again in December for the first time since a long decline, as announced on Friday. Compared to November, it rose three points to 92.2 points. This was the first upward move in six months.
(SDA)