| Consensus | Actual | Previous | |
|---|---|---|---|
| Index | 45.5 | 41.4 | 45.2 |
Highlights
Manufacturing activity contracted a good deal more sharply than expected in April. At just 41.4, the SVME PMI was more than 4 points short of the market consensus and well below its 45.2 March print. This was its weakest level since last October and indicative of a deep and ongoing recession in the sector. Last month's outturn duly extended the unbroken run of sub-50 readings that began back at the start of 2023.
Production, orderbooks and purchasing activity all fell by more than in March but purchase prices essentially stabilised.
The surprisingly poor April results put the Swiss RPI at minus 6 and the RPI-P at minus 23. Economic activity in general continues to fall short of market forecasts.
Production, orderbooks and purchasing activity all fell by more than in March but purchase prices essentially stabilised.
The surprisingly poor April results put the Swiss RPI at minus 6 and the RPI-P at minus 23. Economic activity in general continues to fall short of market forecasts.
Market Consensus Before Announcement
The sector PMI is expected to edge up to 45.5 and so remain well below the 50-expansion threshold.
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.
