Swiss Factory Activity Contracts More than Expected

Switzerland’s procure.ch and UBS Manufacturing PMI rose sharply to 53.3 in March 2026 from 47.4 in the previous month, well above market expectations of 47.0 and signaling a return to expansion for the first time since December 2022. The reading also marked the highest level recorded since that period, as improvements were observed across key components. Production increased by 3.6 points to 50.6, while new orders surged by 7.3 points to 54.2. Purchasing activity also picked up, rising by 3.3 points to 48.3, though it remained slightly below the neutral 50 threshold. Stocks of purchases climbed by 14.8 points to 53.5, while finished goods inventories increased by 7.3 points to 50.3. Meanwhile, supplier delivery times jumped by 10.2 points to 63.6. The labor market component lagged behind the broader recovery, with the employment index slipping by 1.1 points to 47.5, indicating continued contraction in hiring. On the cost side, purchasing prices surged by 15.5 points to 71.3.

Switzerland’s procure.ch and UBS Manufacturing PMI fell to 47.4 in February 2026 from 48.8 in January, defying market expectations of 50.1. This marked the continuation of a three-year stretch below the 50-point threshold, indicating ongoing contraction in the sector. Production declined by 3 percentage points to 47, after rising to 50.8 in January, while order backlogs slipped 0.8 points to 46.9, and stock purchases dropped 4.5 points to 38.6. On the other hand, purchasing volumes improved by 2 points to 45.1, sales stocks edged up 0.1 points to 43, and employment increased by 1.6 points to 48.6. Delivery times also eased slightly, falling 0.5 points to 53.4. On the cost side, input prices saw a significant rise of 4.3 points, climbing to 55.8, highlighting cost pressures in the manufacturing sector.

Switzerland’s procure.ch and UBS manufacturing PMI rose to 48.8 in January 2026 from an upwardly revised 46.4 in December, signalling a modest easing of pressure on the industrial sector. The improvement was driven by a stabilisation in production, with the output index climbing to 50.8, its first expansion since August. Order backlogs rebounded to 47.7, but inventories continued to be reduced. Employment stayed weak at 46.9, pointing to ongoing labour market strain. Purchasing volumes remained in contraction at 43.1, while input prices rose to 51.5 due to higher costs for electronic components and industrial metals. Supplier delivery times eased slightly but remained elevated, reflecting ongoing supply constraints. Looking ahead, expectations of rising protectionist measures increased, with one in four firms anticipating greater trade barriers over the next 12 months, adding uncertainty to the manufacturing outlook.