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Swiss PMI Highest Since 2011

Swiss PMI Highest Since 2011Swiss PMI Highest Since 2011

Saturday’s release of the Swiss manufacturing PMI for July at 60.9, the highest level recorded since February 2011, as well as last Friday’s strong reading of the broad-based KOF Barometer for the same month, both continue to signal increasing cyclical momentum for Switzerland during the current economic upturn driven by the eurozone, cpifinancial reported. Since the landslide victory at the French parliamentary elections for President Macron’s party in June, which has significantly reduced political uncertainty in the eurozone, a weakening Swiss franc to the euro has become a welcome additional tailwind for exporters to spur Switzerland’s ongoing upturn .With no signs of any significant inflation for the time being, the Swiss National Bank can thus stay on the sidelines and take a relaxed stance on currency stabilization, as the franc remains still highly valued against the euro. It appears that in particular Swiss investors, who refrained from engagement in the eurozone when political tension there was elevated, are now becoming more confident to return their surpluses to the eurozone as investment.

 

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