Swiss Industry Remains Below Growth Threshold in September
- 02 Oct 2023 7:40 am CET
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The situation in the Swiss industry remains relatively gloomy. The Purchasing Managers' Index (PMI) rose for the second consecutive month in September, but still remains clearly below the growth threshold. The Purchasing Managers' Index (PMI) for the industry increased in September by 5.0 points to 44.4 points, as UBS announced on Monday. They (formerly CS) calculate the index together with the Swiss Purchasing and Supply Management Association procure.ch. Economists surveyed by the news agency AWP had predicted values in the range of 40.8 to 41.7 points. In July, the PMI Industry plummeted to its lowest level since 2009, with 38.5 points. A value of 50 points or higher indicates growth in the sector, while anything below that indicates contraction. In the report month, the decline in production dynamics has slowed significantly, according to economists at the major bank. Furthermore, the order book is no longer declining as widely as in the previous month, and the labor market remains robust. The reduction of pre-production stocks, however, has accelerated somewhat. The corresponding PMI for the service sector also increased for the second month in a row, firmly establishing itself above the growth threshold. The service PMI, which is more focused on domestic consumption, increased by 2.2 index points in September, reaching 52.8 points. The increase is attributed to a marked acceleration in business activity. However, the order situation remains tense, limiting the growth potential. For the second month in a row, the proportion of companies reporting rising purchase prices exceeded those with price reductions. In addition, the total sales prices rose again in September.