Switzerland – Business leaders regain morale

Swiss entrepreneurs are gently rediscovering the state of mind that animated them in February, before the health crisis.

The pandemic has had as a corollary adjustments in purchasing processes for a third of the companies questioned.


The morale of Swiss entrepreneurs has practically returned to its level before the health crisis. The purchasing managers index in industry (PMI) compiled by Procure.ch and Credit Suisse came in at 49.2 points in July, compared to 49.5 points in February and 41.9 points in June.

The PMI index thus falls within the framework of the expectations of the economists consulted by AWP, who articulated between 47.0 and 50.0 points.

The authors of the periodic report released Monday stress that this index is now four points above its level of a year ago, even though it remains below the growth threshold of 50 points.

Biased perception

The pandemic has had as a corollary adjustments in purchasing processes for a third of the companies questioned, with a tendency to supply more focused on Switzerland and even Europe in particular.

The perception of the situation has been biased in recent months by the “delivery times” component, the extension of which normally responds to the increase in the use of production capacities. Since the outbreak of the coronavirus pandemic, however, the extension of deadlines rather betrayed interruptions in the supply chain.

Delivery times now also seem to be returning to a certain normality, hovering for the second consecutive month around 50 points.

Measured by the yardstick of order books, demand jumped by nearly 10 points but remains with 47.8 points below the growth threshold.

“Commercial activity”

Employment followed a similar trend, but the 46.6 points posted represent the least bad performance since February. Partial unemployment and homework have declined in intensity.

The index of purchasing managers in services for its part crossed the growth threshold, encompassing 2.5 points over one month or 2.7 points over one year to reach 51.6 points. However, progress seems to be slowing down somewhat, after rebounds of 23.4 points in May and 15.2 points in June.

The “commercial activity” component – equivalent in services to “production” in industry – notably gained 8.0 points to reach 64 points. Otherwise, the branch is experiencing similar developments to the industry in terms of supply and employment.


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