"Thanks to the minimum exchange rate the franc was stable in 2012, and since the start of 2013 has lost some of its strength"
- Analysts at Credit Suisse Group AG
Switzerland's key manufacturing output index soared to the highest level in one and a half years in January, reflecting a recovery in the sector from the last year's slowdown. The Swiss Purchasing Managers Index jumped to 52.5 points last month, up from 49.2 points in December, beating analysts' expectations of a 50.5 reading. Despite the fact that index climbed above the 50 level for the first time since August 2011, this is a fourth monthly gain, adding to signs that the recovery is gaining momentum and that it is not a temporary improvement. Despite the gradual amelioration of economic conditions, nation's economics ministry lowered its forecast for GDP growth this year to around 1.3%, down from a previous projection of 1.4%.
"Thanks to the minimum exchange rate the franc was stable in 2012, and since the start of 2013 has lost some of its strength," said analysts at Credit Suisse Group AG, which co-compiled the index. "Simultaneously with the depreciation, industry appears to have finally passed the trough," they said.
"It is doubtful that Switzerland is already on a sustainable recovery path. The economic problems in the eurozone are having an increasingly strong impact on the Swiss economy," VP Bank economist Bernd Hartmann said.
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