Sentiment in Swiss industry brightens only slightly
Published: Friday, Dec 1st 2023, 09:50
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The situation in Swiss industry has recently improved slightly, but remains severely depressed. The Purchasing Managers' Index (PMI) remains clearly in negative territory in November.
The PMI for industry rose by 1.5 points to 42.1 points in November, as UBS announced on Friday. It calculates the index together with the Swiss purchasing and supply management association Procure.ch. Economists surveyed by the news agency AWP had forecast values in the range of 41.0 to 43.0 points.
In July, the manufacturing PMI plummeted to its lowest level since 2009 at 38.5 points. PMI values above 50 points indicate growth and are therefore positive. Values below 50 points signal a decline.
According to the latest survey, production in the manufacturing sector and the "order backlog" component remained below the growth threshold in November. And the weakness in the industrial sector is now also making itself felt on the labor market, it said.
At 46.0 points, the employment component fell to its lowest level since October 2020, the second value in a row below the growth threshold.
Service providers better off
The situation in the service sector, which is more focused on domestic consumption, is better than in the manufacturing industry. There, the PMI rose by 1.4 points to 53.6 points in November. It was thus above the growth threshold for the fourth time in a row.
The outlook for the services sector is brightening overall, the authors of the study conclude. However, here too, companies remain cautious about hiring new staff.
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