Switzerland's manufacturing Purchasing Managers Index (PMI) rose in December, snapping a recent slide, as factories shrugged off a surging number of COVID-19 cases.
The PMI index published on Monday - which points to the health of the country's industrial sector over the next three to six months - rose to 62.7 points from 62.5 points in November. S8N2R00CM
A value above 50 indicates expansion.
Companies said output had increased and order books had remained full. The survey is compiled by the Swiss purchasing managers' association procure.ch and Credit Suisse.
The number of COVID-19 cases in Switzerland has recently risen to record levels, driven by the spread of the Omicron variant, with the government saying it is ready to impose tighter restrictions.
It has already ordered people to work from home and increased the requirement for people to show proof of vaccination or recovery from coronavirus
Manufacturing companies said getting enough supplies to make their products remained a problem. But there are tentative signs that hold-ups in the supply chain are not becoming worse, the survey showed.
"Suppliers' delivery times are no longer lengthening on such a widespread basis, while companies have added to their inventories of finished goods," the survey report said. "This will enable goods to be dispatched rapidly if demand remains strong."
Inflation was becoming a factor, however, with 77% of respondents saying they are seeing higher purchase prices.
The index for the services sector, which was badly hit by previous pandemic waves, rose to 59.3 points in December from 58.0 in November.
"However, it is also possible that the huge uncertainty surrounding the upcoming wave of infections due to the Omicron variant of COVID-19 is not yet fully reflected by the results of the survey," the PMI report said.
(Reporting by John Revill; Editing by Catherine Evans)
