Switzerland: Economic barometer drops for fifth consecutive month
February 27, 2013
The KOF economic barometer - which is a leading indicator for future GDP growth - fell to 1.03 points in February from a revised 1.12 points in January (previously reported: 1.05 points). The figure represents the fifth consecutive decline, which has driven the index to its lowest level in nine months. The February fall, which was in line with markets expectations, suggests that the economy may slow down going forward.
According to KOF, the monthly drop was broad-based. The core GDP sub-indicator (which excludes the construction and banking sectors) fell over the previous month, pointing to less upbeat economic prospects in the coming months. In the same vein, the construction and banking components recorded a slight drop compared to January.
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