Swiss industrial output growth at near four-year high

Industrial production in Switzerland expanded by 8.5% year-on-year in the first quarter of 2025, sharply accelerating from a downwardly revised 2.1% increase in the prior three-month period.

Swiss industrial output growth at near four-year high

This marked the fourth consecutive quarter of growth and the fastest pace since the second quarter of 2021, underscoring the resilience of the country's industrial sector despite lingering global uncertainties. The strong performance was primarily driven by a broad-based recovery in manufacturing, where output surged 9.9% compared to 1.8% in the previous quarter, fueled by robust demand for machinery, precision instruments, and pharmaceutical products—key pillars of Swiss exports. Mining and quarrying also recorded a solid rebound, with output rising by 4.8% versus a marginal 0.1% gain in the fourth quarter, reflecting improved construction-related demand and restocking efforts amid easing global supply chain disruptions. Conversely, the energy supply sector posted a notable decline of 6.3%, reversing the 5.4% gain seen in the prior quarter, weighed by lower demand for heating fuels amid a mild winter and continued shifts toward renewable energy sources.

Quarterly data

On a seasonally adjusted quarterly basis, industrial output surged by 5.4% in Q1 2025, swinging from a 0.7% contraction previously, suggesting that the sector regained momentum at the start of the year, helped by the temporary de-escalation of global trade tensions following the US-China tariff reduction deal. Improved export activity, particularly toward Asian and European markets, also supported the sector, while domestic business sentiment surveys pointed to a pickup in order books and capacity utilization rates. Looking ahead, Swiss industry is expected to maintain moderate growth in the coming quarters, although the pace may ease as businesses navigate a more uncertain global trade environment once the 90-day tariff reduction period ends in July. Additionally, the Swiss National Bank’s cautious monetary stance and a still-strong franc may pose headwinds for export competitiveness, while elevated energy costs and ongoing geopolitical risks could weigh on industrial confidence.