Switzerland: Economic barometer stabilizes in June
June 27, 2014
The KOF economic barometer—a leading indicator for future GDP growth—edged up from a revised 100.1 points in May (previously reported: 99.8 points) to 100.4 points in June. The reading was virtually in line with the 100.0 points the markets had expected and represented only a timid improvement after the index reached its lowest level in nearly two years. The economic barometer is still above its long-term average of 100 points and, according to the KOF Institute, the barometer, “continues to linger very close to its long-term average reading,” while it concluded that, “during the next months the Swiss economy can be expected to run unspectacularly.”
June’s slight improvement was mainly driven by positive developments in the Swiss manufacturing and banking sectors. Conversely, construction, restaurant and catering as well as the retail sector “hardly contributed”.
Author: Ricardo Aceves, Senior Economist