Industrial sector still has plenty of steam

Swiss industry is performing well according to a survey published on Thursday by the country's largest bank UBS.

It also finds that although growth momentum is slowly easing, all indicators for the second quarter and expectations for the third are “positive”.

The survey, conducted in May and June among more than 400 companies, showed that industrial activity remains strong, indicated by high capacity utilisation, rises in order intake and sales figures, as well as continued workforce expansion.

UBS said more than a quarter of the industrial companies taking part in the survey expanded their workforces in the second quarter – “a clear sign that companies’ confidence in the near-term remains intact”.

The watchmaking sector distinguished itself with rapid sales growth and an increase in new orders, and the food industry boasted the fastest expansion in production. Electrical engineering came third in the sector rankings.

UBS expects economic growth of 2.3 per cent this year, falling to 1.4 per cent in 2009.