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Swiss manufacturing index stagnates at record low

Published 04/01/2009, 04:08 AM
Updated 04/01/2009, 04:16 AM
CSGN
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ZURICH, April 1 (Reuters) - The Swiss Purchasing Manager's Index held at a record low in March, data showed on Wednesday, highlighting that Switzerland's manufacturing sector has yet to turn the corner as the country falls into recession.

The Credit Suisse/SVME purchasing managers' index was stable at 32.6 points in March, the same as February, Credit Suisse said, and below the median forecast in a Reuters economists poll of 33 points.

"This was the first time in 15 months that the index has not posted a further decline. It nonetheless remains well outside the growth zone that begins at the 50 point mark," Credit Suisse said in a statement.

While the overall index was stable, three out of five index subcomponents rose in March, although all remaining below the 50 level mark.

"It is far too early to be talking about a trend reversal, however, especially since the indices remain at extremely low levels," Credit Suisse said, adding that the key output and purchasing volume indices had both slipped further.

The low level of the Swiss PMI index follows a drop to new all-time lows of the closely-watched KOF barometer for March.

"The PMI index still points to a very weak first half of the year," said Alessandro Bee, an analyst at Sarasin. "This is in keeping with the KOF business barometer, which also hit new record lows in March. In the next months we expect a stabilisation in both indicators, and maybe towards the summer a slight improvement," Bee added.

"That would then point to a mild recovery of the Swiss economy in the second half of this year." (Reporting by Lisa Jucca; editing by Chris Pizzey)

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