Switzerland: Economic sentiment declines to over two-and-a-half year low in May
In May, the KOF economic barometer—a leading composite indicator for the Swiss economy forecasting a six-month period—dropped from a revised 103.3 points in April (previously reported: 105.3 points) to the series’ long-run average of 100 points in May. This marked the worst reading since December 2015.
May’s print largely reflected a negative contribution from the manufacturing and construction sectors, which more than offset an improvement in sentiment in accommodation and food service. The decline in sentiment in manufacturing and construction was largely driven by a deterioration in the employment component. According to the press release, May’s decline reflected “a normalization of economic development” after over two years of above-average prints.