(16.04.2024) Uncertainty continued to weigh on Swiss industrial activity in March. Raiffeisen Bank’s SME Purchasing Managers’ Index (PMI) fell by two points to 47.9, after coming close to the expansion threshold in February (49.9).
All components dropped back below the growth threshold (50) in March 2025. Order books, which account for 30% of the index, fell from 51.5 to 47.8. Purchasing inventories, already under pressure since December 2024, declined by 1.2 points to 42.9, signaling a certain level of corporate mistrust in the short- and medium-term outlook. Employment, which had fallen sharply between November and January (-9.1, 41.1) before rebounding in February (+6.9, 48), held steady at 48 points.
A special survey by Raiffeisen also revealed that more than 60% of exporting SMEs were scaling back their investments due to global political uncertainty. Overall, nearly a third of Swiss SMEs were also considering investment cuts.
Nearly half of the companies surveyed were prepared to maintain their investments in capital goods, and nearly two-thirds expected their research and development spending to remain unchanged. SMEs thus appear to be prioritizing replacement rather than expansion.
This situation was observed prior to the official announcement of new tariffs by the U.S. administration on April 3 (see The Swiss economy hit by the rise in U.S. tariffs). Experts now fear that the introduction of U.S. trade barriers and the escalation of the trade war could further dampen investment by Swiss SMEs.
Compiled monthly, Raiffeisen Bank’s SME PMI index is based on data collected from a sample of 200 manufacturing companies across Switzerland.
Last modification 16.04.2025
