Switzerland's manufacturing sector contracted for the second month in May, data from the SVME Association of Purchasing and Materials Management and Credit Suisse showed Friday.
The Purchasing Managers' Index fell unexpectedly to 45.4 in May from 46.9 in April. A level below 50 suggests contraction in the sector. The expected level for May was 47.4.
The report indicates that a downturn in industrial activity can occur in the coming few months. The backlog of orders fell again, inventories also decreased sharply.
A lower backlog of orders generally gives rise to weaker production in the months to follow. The production sub-component was the only one to rise notably in May.
by RTT Staff Writer
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