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Swiss companies cut production on high energy prices

Factory chimney
A purchasing managers’ index among Swiss manufacturers dropped 2.2 points to 54.9 in October. © Keystone / Gaetan Bally

One in ten companies in Switzerland have scaled back output because of high electricity prices before possible winter energy shortages.

Industrial producers are more worried about a deficit of electricity than natural gas, a survey published Tuesday by the bank, Credit Suisse showed. Half of the firms polled are preparing for power outages while only a third are bracing for a lack of gas. 

Amid the rising energy risk, a purchasing managers’ index among Swiss manufacturers dropped 2.2 points to 54.9 in October. That’s below the 55.9 reading forecast by economists but above the 50 threshold that separates growth from contraction.

The most popular step companies are taking to secure energy supplies is curbing consumption, followed by acquiring emergency generators or batteries. Other measures include installing solar panels.

Meanwhile, Credit Suisse chairman Axel Lehmann says the planned capital increase will make the lender “rock solid”, while dismissing rumours of a takeover. 

In an interview with Bloomberg TV in Hong Kong, he said that the bank wanted to stay independent.

The bank aims to become a wealth management-centric franchise, centered around entrepreneurs, wealthy clients, the chairman said, adding that it wants to grow in Latin America, Asia Pacific and Middle East markets.


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