FXT Economic Data Summary (Asia-Pacific | 09/04)

Swiss Energy Prices Drive Inflation Higher

Swiss inflation rose more than expected in August, with headline CPI up 0.8% y/y, above the 0.5% forecast, while monthly CPI rebounded from -0.1% to 0.4%. Core CPI increased just 0.4% y/y and 0.2% m/m. Domestic goods prices rose 0.6% y/y, compared with a 1.5% increase in imported goods, suggesting inflation was largely driven by external factors while domestic price pressures remained moderate.

Energy was the main driver of the increase. Energy and fuel prices rose 4.1% m/m and 9.2% y/y, with petroleum products jumping 9.0% m/m and contributing around 0.22 percentage points to monthly CPI. Housing rents increased 0.4%, while services and food prices were broadly stable. FXT analysis suggests that although Swiss inflation exceeded expectations, the pressure remains concentrated in energy and imported goods, with little sign of a broader rise in underlying domestic inflation.

Australian Services Remain in Expansion

Australias services sector continued to expand in August, with Services PMI easing slightly from 53.6 to 53.2, marking a third straight month of growth. New orders increased for a second month, employment expanded for a third month, and business confidence reached a six-month high. However, higher fuel and wage costs continued to squeeze profit margins.

Composite PMI slipped from 53.2 to 52.7 but remained above 50 for a third consecutive month. Services remained the main growth driver, while manufacturing output edged lower. New orders increased across both sectors, and overall export orders rose for the first time in five months. FXT analysis suggests improving orders, employment and confidence should support Australian growth in Q3, although elevated costs may limit further expansion.

Eurozone PMI Remains Resilient

Eurozone Composite PMI held at 52.0 in August, unchanged from July and close to its long-term average of 52.3. New orders continued to grow at a solid pace, employment increased for the first time this year, and export orders returned to growth for the first time in four and a half years, led by manufacturing. Regional performance remained uneven, with Spain and Italy expanding strongly, Germany posting its fastest growth since March, while France contracted for an eighth straight month.

Services PMI edged down from 51.7 to 51.6 but remained in expansion for a second month. Improving domestic demand supported new business, employment growth reached an eight-month high, while both input costs and output price inflation accelerated to three-month highs. FXT analysis suggests resilient growth, improving employment and renewed price pressures provide further support for the ECB to maintain a relatively tight policy stance.

UK Services Growth Accelerates

UK Services PMI rose from 52.1 to 52.5 in August, its highest since April, with new business increasing for a second consecutive month as consumer and business spending improved. Export sales declined for a sixth straight month amid weak European demand and geopolitical uncertainty. Composite PMI also increased from 52.2 to 52.5, as stronger services activity offset slower manufacturing growth.

Services employment fell for a 23rd consecutive month, although the pace of job cuts eased to its slowest since October 2025. Business confidence reached its highest since February, with 47% of firms expecting activity to increase over the coming year. Meanwhile, higher fuel, transport, wage and food costs pushed input price pressures higher. FXT analysis suggests the UK services recovery is gaining momentum, but continued job losses and rising costs indicate that the recovery remains fragile.

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