Swiss SVME Purchasing Managers Index Beats Expectations

Swiss July manufacturing PMI came in better than expected, jumping to 44.3 from 41.8 for June. This compares to our own forecast for 43.0 and a Reuters median for 43.6). The continued rise to the PMI index, combined with the improvement to the KOF leading indicator, suggest that sentiments has bottomed in Switzerland as well, as seen in neighboring European countries. However, survey data still shows that the economy is contracting.