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The Swiss economy displayed signs of improvement in the first quarter of 2024, with indicators suggesting a slightly more dynamic performance than in previous quarters. Despite challenges in the manufacturing sector, the Swiss National Bank (SNB) remains cautiously optimistic about economic growth.
The SNB report highlights that the service sector was pivotal in driving economic growth during the first quarter. Robust service activity contributed to the overall positive momentum, offsetting stagnation in manufacturing.
While services thrived, the manufacturing sector faced challenges primarily due to weak global demand. Companies cited the Swiss franc exchange rate as a major obstacle, limiting pricing flexibility and putting pressure on profit margins.
Despite ongoing challenges, the SNB notes an improving business outlook. Service sector firms are optimistic about continued robust growth while manufacturing companies anticipate increases in sales. This positive sentiment bodes well for future economic performance.
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