(18.05.2022) Small and medium-sized businesses continue to be optimistic. In April, strong demand for industrial products led to a 1.1 point jump in the SME-SMI index to 59.1 points. Nevertheless, there are still uncertainties, particularly concerning rising production costs.
In April, Swiss SMEs confirmed their robust performance with the overall SME SMI index rising from 58 to 59.1 points between March and April 2022, partly due to the surge in demand for industrial products. Delivery times (68.1) and order books (60.9) are among the top-rated factors. Employment is still below the overall index at 55.1 but is continuing its upward trend, rising by 2.2 points.
The vigorous demand, however, is hampered by supply chains that have been challenged by the global economic situation marked by the war in Ukraine and China's drastic measures to combat Covid-19. As a result, while order books are full, production has struggled to keep up, and purchase inventories are shrinking, inexorably reducing profit margins for companies in the secondary sector.
Consequently, the "production" component of the index fell from 59.1 to 56.7, a drop of 2.4 points. The "merchandise inventories" component dropped 3 points, from 57.4 to 54.4.
Accelerating inflation in most European countries could also adversely affect demand for Swiss industrial products in the medium term.
Last modification 18.05.2022
