(18.09.2024) The industrial sector is struggling to recover from the recession and continues to face uncertain prospects. Raiffeisen Bank's SME PMI index rose slightly from 46.8 points in July to 48.0 in August, but it still remains below the long-term growth threshold of 50.
However, some data points indicate a slight improvement in the situation. The "order book" component rose by 0.9 points to 47.8. The "production" (47.5 points / +3.6) and "employment" (49.4 points / +3.5) indicators saw even more significant gains, though still below the growth threshold. On the other hand, indicators for delivery times (47.7 points / -0.5) and merchandise inventories (-47.8 points / -4) showed a notable decline.
In Europe, weak demand continues to drag down the manufacturing sector. In Germany, the Purchasing Managers' Index (PMI) dropped to 42.1 points (-1.2) in August, largely due to a significant decline in orders. The situation has also deteriorated in China and the United States, with both giants reporting PMI figures below 50 and mixed growth outlooks.
In Switzerland, this ongoing stagnation is starting to impact the labor market. While full-time equivalent employment growth remained strong in the second quarter of 2024 (+6% year-on-year), this momentum is largely driven by the pharmaceutical and food sectors. In contrast, most other industries experienced a slowdown or even a decline in employment in August.
Raiffeisen Bank’s SME PMI index, published monthly, is based on data collected from a sample of 200 manufacturing companies operating throughout Switzerland.
Last modification 18.09.2024
