ZURICH, (Reuters) – Rising prices and extended delivery times continue to pose major problems for the Swiss manufacturing industry sector, according to data from procure.ch Purchasing Management Index (PMI).

Although the seasonally adjusted manufacturing PMI fell to 65.4 in October, it remained within growth territory.

Procurement issues are most likely to be one of the contributing factors

A slowdown in output is caused by slower deliveries. Delivery times of suppliers

Although they are rising slightly less than the prior months, they remain high. Claude Maurer, an economist, stated that purchase prices have been steadily rising with 82% of respondents reporting higher input material costs. Credit Suisse (SIX): This helps to compile the index.

Businesses have been forced to rethink their procurement strategies due to uncertainty.

Restock your inventory with finished goods.

He added that they should be topped up along with their stocks of purchase.

Companies can use higher inventories as a dual-edged sword. They allow goods to get dispatched faster when there is demand, but they also make it difficult for them to keep up with demand. “The trend in inventories at the moment is most likely a favourable sign given the general positive momentum,” Maurer explained.

Even with high levels of capacity usage and wide-spread shortages, there was very little growth in the rate of employee expansion. A quarter of all businesses are still recruiting employees.

PMI for the service sector, which is more focused domestically.

The October consumption was also lower than expected, however momentum was still higher than usual and prices were rising on a large scale.