Swiss PMI soars to highest in over three years

• Swiss PMI rises to 65.5 in March, beats forecasts
• Index now at highest level since Nov 2006

ZURICH, April 1 (Reuters) - The upturn in Switzerland's manufacturing sector gathered even more pace in March, underscoring the strength of the Alpine state's economic recovery, data showed on Tuesday.

The Swiss purchasing managers' index soared to a seasonally adjusted 65.5 points in March, its highest level since November 2006, from 57.4 points in the previous month.

The index posted the strongest rise since the survey began in 1995, according to Credit Suisse which publishes the PMI. The jump beat even the most optimistic analysts' expectations and is the latest set of data to highlight the robust recovery of the Swiss economy, which emerged from its worst recession in decades in the third-quarter of last year.

"For the first time the PMI exceeded the figures recorded amid lively economic activity around the turn of the millennium (mean 60.6 points) and those of the boom that lasted until mid-2008 (mean 61.4)."

The Swiss franc rose as high as 1.4187 per euro after the data was released, its strongest since the euro was launched in 1999. The backlog of orders component posted its sharpest-ever rise, climbing to an all-time high, while employment grew for the first time in 17 months, pointing to a possible turnaround in the labour market, the Credit Suisse analysts said.
The Swiss National Bank raised its 2010 growth forecasts at its March meeting and many analysts expect the central bank to hike rates in the second half of this year.

Switzerland's leading growth barometer rose to a near-2-1/2 year high in March, showing the economy was set to grow at a solid pace as banks and manufacturers continue to recover.

Reporting by Katie Reid; Editing by Toby Chopra