Operating conditions across Swiss manufacturing sector deteriorated in March, a survey by procure.ch and Credit Suisse showed Tuesday.
The purchasing managers' index, that measures the performance of the factory sector, fell to 48.3 in March from 50.8 in February and 52.5 in January. Readings below 50 indicate contraction in activity.
The survey report said that it was the first time since December 2012 that the PMI has slipped out of the growth zone. The chaos surrounding the bailout package for Cyprus and stalemate in the Italian elections also created uncertainty among Swiss companies, it added.
The previous buoyancy in output came to a halt in March. The output subcomponent fell by 8 points from a month earlier to close at 49 in March. This was the sharpest fall in the index since June 2011.
The backlog of orders fell again slightly in March, having previously been on the increase for three months in succession, the survey report said.
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