"The situation in the industry remains difficult and pressure on the exporters in the machinery sector is ongoing due to the weak demand from our major markets"
- Peter Dietrich, director of Machinery industry lobby group Swissmem
Swiss manufacturers continue suffering this year, as sales of machinery and electrical products recorded a sharp fall, due to sluggish demand from the neighbouring Eurozone and slowing down Asian economies, an industry lobby group reported on Tuesday. First-half machinery product sales plunged an annual 1.2%, while the number of incoming orders turned lower 2.5%. Additionally, exports fell 1.5%, while German purchases of previously mentioned goods slid 4.7% in the six month through June, offsetting gains in orders from China and the U.S., which rose 4.3% and 1.7%, respectively.
Despite the recent depreciation in Franc's value, and the fact that EUR/CHF has been hovering around 1.23, the Swiss currency is still considered by the nation's authorities as overvalued, posing certain risks and challenges to exporters to the Eurozone, which accounts for around 60% of total machinery goods. Shipments from the Alpine country have been slipping steadily since mid-2001, while the relentless gains in the Franc undermined Swiss competitiveness. However, firms expect industrial activity to recover in the rest of the year on the back of the ongoing recovery in the European Union.
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