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Industrial production in Switzerland grew by 5.5% year-on-year in the second quarter of 2026, defying market expectations for a 4.7% drop and recovering from an upwardly revised 7.6% decline in the previous quarter. The rebound was driven by a strong recovery in manufacturing, which expanded 6.1%, following a 7.7% contraction in Q1, particularly supported by a surge in pharmaceutical production (15.5% vs -21.4%) and stronger output of wood, paper and printing products (5.9% vs -2.0%). In contrast, transport equipment production plunged 15.8% (vs 0.8%), while machinery and equipment output fell 5.1% (vs 3.4%). Mining and quarrying output declined 2.9% (vs 3.4%), while electricity supply contracted 2.0% (vs -6.8%). Overall, production including construction, grew by 5.1%, marking a sharp turnaround from the 6.5% contraction in Q1. On a seasonally adjusted quarterly basis, industrial activity climbed by 9.7%, rebounding sharply from an upwardly revised 1.8% fall in the preceding period.
