Switzerland: Economic barometer remains broadly stable in October
October 26, 2012
The KOF economic barometer, which is a leading indicator for future GDP growth reached 1.67 points in October, virtually unchanged from the revised 1.68 points recorded in September (previously reported: 1.67 points). The reading exceeded market expectations, which had the indicator declining to 1.36 points. According to the Institute, the upward trend observed in recent months has run out of steam. Nonetheless, the Institute pointed out that the Swiss economy should remain in a positive trend in coming months. The subdued reading showed that the core GDP sub-indicator (which excludes the construction and banking sectors) remained unchanged compared to the previous month. The banking sub-gauge recorded an increase over the September survey, whereas the construction component showed a more negative dynamic.
Author: Ricardo Aceves, Senior Economist