(13.04.2022) Swiss industrial SMEs are maintaining their morale despite troubled times. Raiffeisen Bank's PMI-SME index increased by 1.3 points between February and March 2022. It has continued its progression after having gained nearly 10 points the previous month.
The sharp rise in the cost of fossil fuels as well as raw materials, particularly industrial metals such as aluminium, has not shaken the solid confidence of the industry's SMEs. Most of the companies surveyed by Raiffeisen even report dynamic growth.
The index for production recorded the largest increase from 53.9 to 59.1 points. Even if, due to bottlenecks, supply lines are not fully restored, production volume has risen thanks to the weakening of the Omicron wave. Full order books support production. The number of backorders has decreased.
Once again, SMEs in the industry have created jobs. However, the momentum remains moderate. At 52.9 points, the corresponding sub-index is only slightly above the 50 percent expansion threshold.
In the near future, SMEs will still have to deal with bottlenecks and high energy costs, according to the bank. The global economy remains under pressure because of war in Ukraine, as well as China's epidemic recovery. The possibility of a fossil fuel embargo would have serious consequences for Switzerland.
Last modification 13.04.2022
