| Consensus | Actual | Previous | |
|---|---|---|---|
| Index | 45.0 | 45.2 | 44.0 |
Highlights
Manufacturing had a better month in March but the sector continues to struggle. At 45.2, the SVME PMI was up from February's 44.0 to claim an 11-month high and just beat the market consensus. However, it was still almost 5 points below the expansion threshold and so extended its unbroken run of sub-50 readings that began back at the start of 2023.
Production, employment, orders and purchasing volumes all fell at reduced rates versus February. By contrast, prices declined more steeply.
The slightly stronger than expected headline index lifts the Swiss RPI to minus 11 and the RPI-P to minus 20 but leaves economic activity in general still falling somewhat short of market forecasts.
Production, employment, orders and purchasing volumes all fell at reduced rates versus February. By contrast, prices declined more steeply.
The slightly stronger than expected headline index lifts the Swiss RPI to minus 11 and the RPI-P to minus 20 but leaves economic activity in general still falling somewhat short of market forecasts.
Market Consensus Before Announcement
The headline index is expected to climb from February's very weak 44.0 to 45.0 in March.
Definition
The SVME (Schweizerischer Verband für Materialwirtschaft und Einkauf) 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).
Description
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.
