Switzerland's Q1 GDP Growth Revised Down to 0.4 Percent
Gross domestic product (GDP), adjusted for the impact of major sporting events, rose 0.4% quarter-on-quarter in the January–March period, following a 0.2% gain in the prior quarter, the State Secretariat for Economic Affairs (SECO) reported. The reading fell short of a preliminary 0.5% estimate published in May.
SECO identified industrial activity as the standout contributor to first-quarter growth, while the services sector delivered only modest and uneven gains across its various segments. Domestic final demand remained subdued, signaling that household spending and private investment offered little additional lift to the overall expansion.
The data lands as Switzerland navigates a notably cloudier external environment. The ongoing war in Iran is weighing on business and consumer confidence, while simultaneously driving demand for the safe-haven Swiss franc — a dynamic that cuts both ways. A stronger franc risks undermining the competitiveness of Swiss exporters by inflating the cost of their goods in overseas markets.
On a brighter note, Switzerland's manufacturing sector flashed signs of renewed momentum. The manufacturing purchasing managers' index (PMI) climbed to 57.3 in May from 54.5 in April, its strongest reading in more than three years, pointing to accelerating factory activity heading into the second quarter.
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