| Actual | Previous | |
|---|---|---|
| Index | 46.3 | 49.0 |
Highlights
Although resilient in August, the PMI fell 2.7 points in September to 46.3 in the face of the 39 percent US-imposed tariffs on Swiss exports.
Some 47 percent of Swiss industrial companies said they were affected by protectionist measures in September, 7 percentage points more than in August. The production sub-component fell 6.1 points from 55.4 in August to 49.3 in September, back to below the 50-threshold, while the index for delivery times rose to 56.3 from 51.4 in August.
The services component rebounded after summer's slump, rising 7.4 points, from 43.9 in August to 51.3 in September.
The US tariffs seem to have affected the Swiss economy; however, it is difficult to say how long this will last as the tariff issue continues its way through the US court system.
Some 47 percent of Swiss industrial companies said they were affected by protectionist measures in September, 7 percentage points more than in August. The production sub-component fell 6.1 points from 55.4 in August to 49.3 in September, back to below the 50-threshold, while the index for delivery times rose to 56.3 from 51.4 in August.
The services component rebounded after summer's slump, rising 7.4 points, from 43.9 in August to 51.3 in September.
The US tariffs seem to have affected the Swiss economy; however, it is difficult to say how long this will last as the tariff issue continues its way through the US court system.
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.
