Switzerland: Economic barometer increases somewhat in August
August 29, 2014
The KOF economic barometer—a leading indicator for future GDP growth—inched up from a revised 97.9 points in July (previously reported: 98.1 points) to 99.5 points in August. The reading overshot the 97.8 points the markets had expected. As a result of the increase, the economic barometer nearly touched the long-term average of 100 points. In its accompanying statement, the KOF Institute noted that the Swiss economy, “is expected to stabilize around its long-term average.”
The positive impulse came from more optimism in the manufacturing and consumption sectors. KOF added that indicators for the international environment, “positively contributed to the increase of the barometer, albeit to a lesser extent.” Conversely, the sub-indicator for the construction sector deteriorated over the previous month, which signaled a loss in momentum in the sector.
Author: Ricardo Aceves, Senior Economist