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%). Construction activity also accelerated to 2.1% from 0.6%, led by stronger building construction (4.3% vs 3.3%). 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 in the secondary sector, including construction, increased 5.1% year-on-year, marking a sharp turnaround from the 6.5% contraction in Q1.