​Swiss purchasing managers’ indices mixed in December 

The mood among purchasing managers at Swiss industrial companies remains gloomy. Their assessments of employment in particular deteriorated at the end of last year.(symbolic image)
Keystone
The recovery in Swiss industry is still a long time coming. The managers responsible for purchasing have once again lowered their assessments, albeit only minimally. By contrast, the services PMI climbed more clearly into growth territory in December.The Purchasing Managers’ Index (PMI) for industry fell by 0.1 points to 48.4 points in December (seasonally adjusted). It thus remained below the growth threshold: PMI values above 50 points indicate growth and values below that indicate a decline.This means that the indicator has now remained below the 50-point mark for 24 months, as UBS announced on Friday. The major bank publishes the index together with the purchasing and supply management association Procure.Overall, this marks the end of a difficult year for Swiss industry, in which – as in 2023 – no value was above the 50-point mark.Tense employment situationThe sub-components for production and the order backlog are now also just below the growth threshold. However, the employment situation is the biggest burden. This had deteriorated again towards the end of the year with a fall of 0.8 points to 44.7 points compared to November.In view of Donald Trump’s expected protectionist policies, a total of four out of ten industrial companies also expect an increase in trade barriers in the new year. The situation is similar in the services sector.Services PMI improves againMeanwhile, the seasonally adjusted PMI for the services sector improved to 53.2 points in December. This is the third month in a row that it has been above the growth threshold.The solid growth in the services sector is broad-based – three of the four components increased compared to the previous month. At 57.8 points, business activity even reached its highest level since January 2024, according to UBS. Order books also benefited from this momentum. However, as in industry, the employment component was a downer. At 47.6 points, it is once again well below the growth threshold.