| Actual | Previous | |
| Index | 53.3 | 47.4 |
Highlights
The manufacturing sector expanded for the first time in more than three years, with the seasonally adjusted index rising to 53.3 in March from 47.4, as the conflict in the Middle East spurred new orders.
Order books were above 50 for the first time since October 2024, rising to 54.2 in March from 46.9 the month before.
Delivery times were extended however, with the reading jumping to 63.6 from 53.4 in February. Increased delivery times are generally viewed as increased demand, but in this case much of the increase stems from the situation in the Middle East.
As to be expected, prices surged as seen by the result of 71.3 in March from 55.8 the month before.
Services were also higher, rising to 57.2 in March, recording its fourth consecutive month of expansion.
Manufacturers appear to be increasing production as customers place orders in anticipation of continued higher prices. Even if the conflict is soon resolved, prices and delivery times will continue to remain high.
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.