FX.co ★ Swiss Factory Downturn Eases in January

Switzerland's procure.ch and UBS manufacturing PMI increased to 48.8 in January 2026, up from a revised 46.4 in December. This uptick indicates a slight alleviation of pressures within the industrial sector. The positive change was attributed to stabilizing production, evidenced by the output index rising to 50.8, marking its first expansion since August. There was a recovery in order backlogs, now at 47.7, although inventories continued to decline. Employment remained subdued at 46.9, highlighting persistent challenges in the labor market. Purchasing volumes stayed in contraction territory at 43.1, while input prices climbed to 51.5, driven by increased costs for electronic components and industrial metals. Supplier delivery times improved marginally but still reflected ongoing supply constraints. Looking forward, there is heightened anticipation of increased protectionist measures, with 25% of firms expecting greater trade barriers over the next year, which adds to the uncertainty surrounding the manufacturing sector's future.