Switzerland: Economic barometer declines for second consecutive month
November 30, 2012
The KOF economic barometer - which is a leading indicator for future GDP growth - fell to 1.50 points in November, down from the revised 1.64 points in October (previously reported: 1.67 points). The decline, which undershot market expectations, suggests that the economy may lose momentum going forward. According to KOF, the core GDP sub-indicator (which excludes the construction and banking sectors) declined over the previous month, signalling gloomier economic prospects in the coming months. At a sector level, the construction sub-gauge is now pointing to a weakening in construction activity in the coming months, while the banking component rose, indicating improving prospects within the sector.
Author: Ricardo Aceves, Senior Economist