Swiss Industry Faces Challenges Amid Economic Uncertainty

Swiss industry is grappling with dwindling orders and sales due to reduced European demand and a strong franc. Concerns around potential U.S. trade tariffs add to the dilemma. Surveys reveal a gloomy outlook, increased job cuts, and stagnant capacity use, highlighting economic challenges faced by Swiss manufacturers.

The Swiss industrial sector is experiencing a downturn, with companies reporting decreased orders and sales. This slump is attributed to diminished demand from Europe and the impact of a strong Swiss franc on exporters, according to recent surveys.

Concerns are mounting over the potential introduction of higher export tariffs by the U.S. as Donald Trump assumes the presidency next year. Swiss industrial bodies, including Swissmem, report a 4.2% drop in sales and a 3.6% decrease in exports over the first nine months of 2024.

Swiss manufacturing, a key economic contributor, is feeling the pinch. Smaller companies report the lowest business climate index since January 2021, with many considering the environment unfavorable. Job cuts are becoming common as geopolitical uncertainties and a downturn in Germany further strain industry prospects.

(With inputs from agencies.)