Switzerland Economic Sentiment


Economic barometer jumps to highest level in one year

The August KOF economic barometer, which is a leading indicator for future GDP growth, rose to 1.57 points from the revised 1.41 points recorded in July (previously reported: 1.43 points). The index climbed to its highest level since August 2011 and exceeded market expectations, which had the indicator improving to 1.50 points. According to the Institute, the positive reading reinforces the notion that GDP growth will gain steam in annual terms over the next six months. The monthly improvement was broad-based, reflecting an increase in the core GDP sub-indicator (which excludes the construction and banking sectors) as well as in the construction and banking sub-gauges. According to KOF, all three components "give positive impulses to the dynamics of the barometer".

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