Swiss Manufacturing PMI jumps to 26-month high

Switzerland's manufacturing sector expanded for the fourth successive month in July, and at a significantly faster pace than in the previous month, data from a survey compiled by Credit Suisse showed Friday.

The seasonally adjusted purchasing managers' index for the manufacturing sector climbed to 57.4 in July from 51.9 in June, and stayed above the no-change 50 mark - which indicates unchanged activity - for the fourth consecutive month.

Economists were looking for a reading of 52.4 for July. The latest score was the highest since May 2011, data showed.

Driving the pick up in activity, new orders placed with Swiss manufacturers increased further in July, and at the fastest pace in around two years. In line with the upturn in new business, production growth also accelerated to levels last seen around two years ago.

At the same time, supplier delivery times increased and stocks of finished goods decreased, reflecting higher production capacity utilization. Responding to the increase in activity, Swiss goods producers halted their cutbacks in workforces, the survey showed.