Despite initial glimmers of hope: the dry spell in the tech industry continues

The Swiss technology industry (mechanical and electrical engineering and related technology sectors) had a challenging year in 2023. Compared with 2022, new orders received were down by 8.4%, exports by 2.6%, and sales by 0.8%. The generally good order backlog from the previous year prevented a more serious fall in sales. The further course of business is hard to predict, although there are some initial glimmers of hope. The decline in new orders received slowed somewhat in the fourth quarter of 2023 and the global purchasing managers’ indices – while at a low level –are showing a slightly positive trend. The difficult currency situation has also improved a little recently. If these trends continue, the downturn may bottom out in mid-2023. It is now vital to improve the framework conditions by successfully concluding the free trade agreements with India and Mercosur, as well as a negotiated solution in the context of Bilaterals III.