Swiss Factory Contraction Intensifies in February

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.

Switzerland’s procure.ch and UBS manufacturing PMI fell to 45.8 in December 2025 from 49.7 in November, well below forecasts of 49.9 and marking three years below the 50-point threshold. It also marks the lowest level since the announcement of US tariffs, despite some easing in protectionism-related headwinds. The downturn was broad-based, with production dropping 2.1 points to 45.8, while the order book index slid sharply by 7.1 points to 41.1. Purchasing volumes declined to 42.2, and stocks of purchased goods fell to 42.5. Employment also weakened, slipping 3.5 points to 46.4, remaining firmly in contraction territory. On the cost side, purchasing prices stayed above 50 at 52.8, despite a monthly decline, and delivery times edged up to 56.4, while sales stocks eased to 46.2. Overall, the PMI continues to reflect ongoing strain in Swiss manufacturing, even after the US agreed a trade deal with Switzerland that reduced outsized tariffs on some of the country’s exports.