"Evidently, the situation for industry has stabilised, although it is too soon to talk about a sustainable recovery"
- Swiss SVME purchasing managers' association and Credit Suisse
Switzerland's key manufacturing output index surged in April; however, a dip in the backlog of orders and in employment levels clouded the outlook. The Swiss Purchasing Managers Index rose to 50.2 points last month, up from 48.3 points in March, above analysts' expectations of a 49.0 reading. A gauge of manufacturing output jumped above the 50 mark, which separates growth from contraction, and recovered after previous month's contraction. Swiss economy is seen rising 0.3% in the three months through June 30 before growing 0.4% each in the third and the fourth quarter. As to the whole 2012, Swiss gross domestic product slowed to 1% in 2012. The Eurozone is nation's biggest trading partner and confidence in the Swiss manufacturing sector is directly linked to developments in the region.
"Evidently, the situation for industry has stabilised, although it is too soon to talk about a sustainable recovery," the report's authors, the Swiss SVME purchasing managers' association and Credit Suisse, said in a statement.
"Overall, PMI is ahead of expectations but it's clear we cannot isolate ourselves from the Eurozone. It's a bumpy recovery ahead," said Julius Baer economist Janwillem Acket.
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