‘‘The general trend toward improving Swiss manufacturing activity is unmistakable"
-Swiss SVME purchasing managers' association and Credit Suisse
Switzerland's key manufacturing output surged to a two-year high last month, as production increased sharply and the situation in the labour market improved, suggesting the economy may outpace analysts' projections for the second quarter growth. The Swiss Purchasing Managers Index surged to 57.4 points last month, up from 51.9 points in May, above analysts' expectations of a 52.5 reading. Figure touched the highest level since May 2011, and this is the fourth consecutive month of reading above the 50 mark that separates expansion from contraction.
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. Earlier the SNB said the cap on a Franc is still vital, and as long as they maintain it, the economy is less likely to be affected by the global slowdown and the financial and debt crisis in the neighbouring Eurozone. According to SNB's estimates, the economy should decelerate significantly in the second quarter, and afterwards the economic activity should start gaining pace, supported by developments in the global economy. For the whole 2013, the SNB expects the GDP growth of 1.0-1.5%.
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