Switzerland’s GDP growth for Q2 came in flat at 0.0% qoq, missing the modest expectation of a 0.1% qoq growth. While this paints a grim picture, particularly for manufacturing and construction sectors, certain segments like trade and accommodation services displayed resilience, leaving a mixed bag of results for economists and investors to sift through.
The manufacturing sector contracted sharply by -2.9% qoq, weighed down significantly by a decline in the chemical and pharmaceutical industry, which shrank by -2.3%. Mechanical engineering and metal construction also faced headwinds, reflecting the sector’s sensitivity to challenging international conditions. Furthermore, the construction sector didn’t fare well either, contracting by -0.7% qoq.
On a brighter note, both private and government consumption showed marginal growth at 0.4% and 0.1% qoq, respectively. These figures indicate that domestic demand remains somewhat steady, offering a counterbalance to the weaknesses observed in production sectors.
Equipment and software investment plunged by -3.7% qoq, while exports of goods fell by -1.2% qoq. However, export of services saw a rise of 2.6% qoq, and imports of goods and services contracted by -3.7%, making a net positive contribution to GDP.
