FX.co ★ Swiss Factory Activity Contracts More than Expected

Switzerland's procure.ch and UBS manufacturing PMI experienced a decline, falling to 45.8 in December 2025 from 49.7 in November, significantly below the anticipated 49.9. This marks a continuation of three years below the critical 50-point threshold and represents the lowest level since the announcement of US tariffs, despite some reduction in protectionism-related challenges. The downturn was widespread, with production decreasing by 2.1 points to 45.8, and the order book index plunging by 7.1 points to 41.1. Purchasing volumes decreased to 42.2, and stocks of purchased goods fell to 42.5. Employment also weakened, dropping 3.5 points to 46.4, indicating a sustained contraction. On the cost side, purchasing prices remained above the neutral mark at 52.8, despite a monthly decrease, and delivery times increased to 56.4, while sales stocks decreased to 46.2. Overall, the PMI continues to highlight ongoing challenges in Swiss manufacturing, even after the US and Switzerland reached a trade agreement that lowered some of the excessive tariffs on Swiss exports.