Switzerland PMI Set for Next Release

Switzerland's PMI Set for Next Release

Today at 08:30 GMT, procure.ch will publish the latest Manufacturing PMI for Switzerland. Analysts forecast the PMI to increase to 51.0 from a previous reading of 48.5, showing that the manufacturing sector in the country is getting closer to expansion. The PMI, based on a survey of over 300 company managers, measures important elements such as sales, new orders, employment, and expectations for future business.

A good PMI number, or at least one that would meet expectations, would arguably mean that businesses in Switzerland are becoming more confident with the economic recovery, meaning higher investment activities and higher production, so a higher Swiss franc value. On the other hand, a lower-than-expected PMI will indicate continuing contraction in manufacturing, probably spurring fears of slower economic momentum and hurting the currency markets in general.

The release could, therefore, be closely followed by economists and those monitoring markets for any signs of how the Swiss economy would find its way through the global turmoil. Although this uptrend may indicate the beginning of improvement in the economy, such external factors as the dynamics of international trade and energy costs might dampen the optimism therein. Therefore, the January PMI could be an important indicator for investors and policymakers to rethink strategies for the coming months.