Switzerland’s secondary sector recorded a downturn in the second quarter of 2025, with the construction industry experiencing a sharper drop than industry.
According to figures released on Monday by the Federal Statistical Office (FSO), overall output in the secondary sector, which covers both industry and construction, declined by 0.4% between April and June compared with the same period a year earlier.
Industrial output declined only marginally in year-on-year terms, slipping by 0.1%. The shift is partly linked to the tariff discussions that began in April under US President Donald Trump’s so-called “Liberation Day” initiative.
In the run-up to those talks, and throughout the first quarter, production had surged by 7.5%, suggesting that the second-quarter figures largely reflect a return to more normal levels rather than a sharp contraction.
Following a robust opening to the year, Switzerland’s economy lost momentum in the second quarter. Adjusted data show that gross domestic product (GDP) expanded by only 0.1% compared with the previous quarter, signalling a marked slowdown in growth, Swiss Info reports.
The steepest declines were recorded in vehicle manufacturing, which contracted by 10.4%, followed by the textile and clothing industry (-4.7%) and the wood and paper sector (-1.9%).
By contrast, some areas managed to post growth: output in data processing equipment and watchmaking rose 1.8% year-on-year, while pharmaceutical production increased by 1.6%.
Furthermore, overall, construction activity declined by 0.5%, marking a steeper drop than in industry. Yet the picture within the sector was mixed: building construction rose by 1.9% and civil engineering recorded a strong 7.5% increase, while preparatory site work and construction installations contracted by 2.5%.
Turnover registered an even steeper decline than production, dropping 1.2% year-on-year. That said, the decrease was concentrated in industry, where turnover fell by 1.4%. Whereas the construction sector saw a modest increase compared with the same period last year.