Switzerland: Economic barometer dips to 10-month low
March 27, 2013
The KOF economic barometer - which is a leading indicator for future GDP growth - fell to 0.99 points in March from a revised 1.04 points in February (previously reported: 1.03 points). The March drop, which exceeded market expectations, represents the sixth consecutive drop and has driven the index to its lowest level in 10 months. Despite the monthly fall, the KOF Institute argued that "trend, however, now indicates stabilisation", suggesting that year-on-year economic growth is expected to remain positive in the coming months.
According to KOF, the monthly decline reflected a deterioration in the core GDP sub-indicator (which excludes the construction and banking sectors) and the banking component. In contrast, the construction sub-component improved in March.
FocusEconomics Consensus Forecast panellists expect GDP to expand 1.1% in 2013, which is up 0.1 percentage points from last month's projection. For 2014, the panel expects economic growth to accelerate slightly to 1.5%.
Author: Ricardo Aceves, Senior Economist