Sentiment among tech SMEs remains gloomy
Published: Wednesday, May 29th 2024, 10:50
Updated At: Wednesday, Aug 21st 2024, 10:10
Zurück zu Live Feed
The mood among SMEs in the Swiss mechanical, electrical and metal engineering industries (MEM) remains gloomy. The lack of orders in particular is taking its toll on companies.
The business climate index of the industry association Swissmechanic deteriorated slightly in the second quarter of 2024 compared to the first quarter of the year to -22 from -20 points. It thus remained clearly in negative territory for the fifth time in a row, as outlined in a press release on Wednesday.
The economic situation remains challenging for companies. The biggest problem is the lack of orders - around a quarter of the companies surveyed only have a maximum of one month's production secured. Overall, around half reported falling incoming orders and turnover.
Another problem is falling margins. The number of companies that are not investing due to a lack of equity is "worrying". In the association's opinion, this indicates that the first SME MEMs are slowly running out of steam.
There is no rapid improvement in sight: while SME MEMs have been cautiously optimistic to date despite the difficult economic environment, the outlook for the third quarter of 2024 now tends to be pessimistic.
According to the association, a further reduction in key interest rates by the Swiss National Bank and the reduction of regulations for companies could provide relief. According to a Swissmechanic survey, bureaucratic processes tie up 15 percent of human resources.
©Keystone/SDA
German 
English 
French 
Spanish 
Arabic