- Swiss SVME purchasing managers' association and Credit Suisse
Switzerland's key manufacturing output index surged more than expected in May and further improvement is expected, as domestic demand rebounded. The Swiss Purchasing Managers Index rose to 52.2 points last month, up from 50.2 points in April, above analysts' expectations of a 50.9 reading. A gauge of manufacturing output jumped above the 50 mark, which separates growth from contraction, for a second consecutive month. The improvement was mostly driven by a strong domestic demand, as there was a significant increase in purchases and production.
Analysts are expecting the nation's manufacturing sector to expand further; however companies still appear to be sceptical, as they are still showing a little willingness to increase their spending. In a previous weeks' report, data showed that private consumption rose 0.6% in the first quarter of 2013, allowing the Swiss economy to gain the momentum even in the face of a strong currency.
Swiss economic output grew 0.6% in the first quarter of this year, accelerating from a 0.3% growth in the last quarter of 2012 and exceeding analysts' expectations who forecasted a 0.2% expansion. According to the SNB's latest estimates the country's GDP is likely to grow between 1% and 1.5% during this year. The bank will update the forecast at its next policy review which is scheduled on June 20.
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