(Bloomberg) -- The global trade dispute and travails of Germany's car industry have begun leaving their mark on Swiss industry, with chemicals-specialist EMS-Chemie Holding AG citing the fallout this week, joining a number of other companies across the region.
The euro area is Switzerland's top trading partner, and Swiss exports to the southern German state of Baden Wuerttemberg exceed those to China. The bloc's economy is in the throes of a slowdown that could yet get worse and Germany is possibly on the verge of a recession.
That weakness has already shown up in manufacturing surveys and is now being highlighted by Swiss companies. Conveyor belt-maker Interroll Holding AG, whose products are used by Amazon, Siemens AG and Zalando SE, saw first-half orders drop almost 8%, while EMS reported a drop in sales and said the global economic slowdown had weighed on business.
Small, open economies like Switzerland are particularly vulnerable to disruptions to international trade. Trade-reliant Singapore's economy unexpectedly contracted in the second quarter, a sign the global slowdown may deepen.
Read More: German Corporate Insolvencies to Rise for First Time in a Decade
“Trade conflicts between major powers caused considerable uncertainty among consumers and companies,” EMS said on Friday. “Inventory stocks were also reduced. The automotive industry in particular, as well as other industrial sectors, showed a substantial decline.”
To contact the reporter on this story: Catherine Bosley in Zurich at cbosley1@bloomberg.net
To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Zoe Schneeweiss
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