Keystone
Swiss industry continues to weaken. And because of Trump’s tariff hammer, there are now further significant downside risks, according to the umbrella organization.
In the first quarter of 2025, sales in the mechanical and electrical engineering industries (MEM) and related technology sectors fell by a further 3.0% compared to the same period last year, as the umbrella organization Swissmem announced on Tuesday. This is the eighth time in a row that sales have fallen.
The association speaks of an actual slowdown. Capacity utilization in the companies fell to 81.1 percent – well below the long-term average of 86.0 percent.
Members more pessimistic
There is no rapid improvement in sight. On the contrary, the most important indicators suggest that the weak business development in the industry will continue in the coming months, according to Swissmem. There are also considerable downside risks.
The expectations of the association’s member companies are correspondingly subdued: only 24% of companies still expect an increase in orders from abroad over the next twelve months. On the other hand, the proportion of those expecting orders to fall has increased by seven percentage points to 32% since the end of 2024.
The remaining 44% of companies expect order levels to remain the same. The only significant impetus is expected to come from India, while expectations for US business have collapsed.
