Swiss machinery orders plunge

The drop in orders for Swiss machinery could depress sales for another six months Keystone

Switzerland's mechanical and electrical engineering industries are facing a difficult year after reporting losses in orders and sales in 2001.

Sales dropped last year by 3.4 per cent, while new orders plummeted by more than ten per cent, putting the sector back where it was in 1999.

The industry, which employs more than 330,000 people, was also hit by the strong franc. According to Swissmem, the industry’s leading representative body, forecasts for 2002 are expected to be dominated by a mixture of general uncertainty and cautious optimism.

“The decline in orders from the second quarter of 2001 will continue to depress sales with a time lag of around six months,” said the organisation on Wednesday.

“New orders are expected to recover in the second half of 2002 at the earliest. However, the upturn could be delayed by factors such as a slower return of global consumer confidence or a deterioration in the international political situation.”

The 180 enterprises affiliated to Swissmem said turnover fell below expectations in the second half of 2001.

A study carried out by the organisation in February showed around 80 per cent of its members were experiencing narrower margins, while around a half reported decreases in orders.

One bright spot in a sea of gloomy figures was that exports to China, Indonesia and Thailand soared.

swissinfo with agencies