| Actual | Previous | |
|---|---|---|
| Index | 49.6 | 42.1 |
Highlights
The Swiss PMI rose at its third-fastest rate since its inception, up 7.5 points in June to a seasonally adjusted 49.6. That matches February's level, which was before US tariffs took effect.
Among the sub-components, orders gained 14.5 points, moving above the level marking expansion to 50.4 in June. Because the US tariff"pause" lapses in July, businesses were likely getting orders in before then. In June 60 percent of purchasing managers expect an increase in protectionist measures, up from 50 percent in May, with less than five percent expecting them to ease.
The services component, often volatile, fell into contraction for the first time since July of last year, to a seasonally adjusted 48.5 in June from 56.3 in May. Still, the three-month average stands at 52.4.
It would be premature to say the Swiss private sector has discounted the US tariff policy, with the more likely scenario is that orders were being pushed up ahead of the July 9 negotiation deadline set by the US.
Among the sub-components, orders gained 14.5 points, moving above the level marking expansion to 50.4 in June. Because the US tariff"pause" lapses in July, businesses were likely getting orders in before then. In June 60 percent of purchasing managers expect an increase in protectionist measures, up from 50 percent in May, with less than five percent expecting them to ease.
The services component, often volatile, fell into contraction for the first time since July of last year, to a seasonally adjusted 48.5 in June from 56.3 in May. Still, the three-month average stands at 52.4.
It would be premature to say the Swiss private sector has discounted the US tariff policy, with the more likely scenario is that orders were being pushed up ahead of the July 9 negotiation deadline set by the US.
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.
