CH: SVME Purchasing Managers' Index

Tue Apr 03 02:30:00 CDT 2018

Consensus Actual Previous
Level 64.3 60.3 65.5

March's PMI pointed to a surprisingly rapid cooling in Swiss economic activity. However, at 60.3, down from a near-record 65.5 in February, the latest reading was still well above the long-run average (53.9) and easily high enough to indicate another very robust period for economic growth. The index has been on the strong side of 60 every month since last May.

The Association for Purchasing and Supply Management's Purchasing Managers' Index (PMI) is produced in conjunction with Credit Suisse. The PMI provides an estimate of manufacturing business activity for the preceding month by using information obtained from a representative sector of purchasing managers. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting).

The PMI is very sensitive to the business cycle and tends to match growth or decline in the economy as a whole. To construct the PMI the Swiss Association of Purchasing and Materials Management conducts monthly surveys of purchasing executives on their performance in the current month versus the previous period. Because the amount of materials ordered by purchasing managers parallels the level of manufacturing production, the PMI is a gauge of production growth. The results are indexed with a centerline of 50; values above 50 indicate expectations of expansion and values below 50 indicate expectations of contraction for the manufacturing sector.