| Actual | Previous | |
| Index | 54.5 | 53.3 |
Highlights
After expanding for the first time in more than three years in March, the manufacturing sector was able to build on those gains. In April the PMI rose to 54.5 from 53.3 in March, as the conflict in the Middle East continues to play a significant role.
Production and order levels increased in April as companies are looking to stockpile inventories ahead of additional expected supply chain disruptions. This in turn helped boost production.
A similar dynamic has been evident for other European countries. But unlike some other economies where delivery times have been drawn out, for Switzerland they have remained relatively steady.
By contrast, the services economy saw a slight decline in activity, falling to 54.8 in April.
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.