Manufacturing sectors in Switzerland and Germany show signs of recovery

Small and medium-sized enterprises (SMEs) in the Swiss machinery, electrical, and metal (MEM) industries are showing early signs of improvement, though a full turnaround has not yet occurred. According to the Swissmechanic business climate index, the index rose to -20 points in the second quarter, up from -30 in the first quarter. While two-thirds of companies still view the situation as unfavorable, exports have grown for four consecutive quarters and capacity utilization has returned to long-term averages.

In Germany, the electrical and digital industry is experiencing a shift in employment trends. For the first time in three years, new hires are outstripping departures. The number of job openings in this sector has increased by 25% since the beginning of 2026, reaching nearly 10,000 positions. Additionally, the use of short-time work has decreased significantly compared to the previous year, and more companies are planning to expand their workforce rather than reduce it.