Swiss manufacturing growth distorted by delivery delays

The Swiss manufacturing PMI rose above the growth threshold again in March after more than three years, reaching 53.3. At first glance, this signals a recovery, but the data suggest the improvement is partly distorted by factors linked to global tensions.

The extended delivery times boosting the index reflect disrupted supply chains caused by the conflict in the Middle East rather than strong demand. Even excluding these effects, however, the PMI would remain slightly above the growth threshold.

The improvement is driven mainly by new orders and production, while employment has edged down. Purchase prices also rose significantly, particularly for metals, oil and electronics. The services sector continued to expand steadily, with the PMI reaching 57.2, supported by both new orders and employment.

At the same time, firms are warning of rising protectionist risks. Although the current data point to improvement, its sustainability remains uncertain and will depend on the evolution of global conflicts and trade barriers.

(pir)