Switzerland: Economic sentiment dips in March on growing pessimism among manufacturers
March 29, 2018
In March, the KOF economic barometer—a leading composite indicator for the Swiss economy forecasting a six-month period—fell 2.4 points to 106.0, down from a revised 108.4 in February (previously reported: 108.0). The decline in the indicator was sharper than anticipated by analysts, who had expected a drop to 107.2 points. Nevertheless, March’s reading remained above the 100-point threshold, signaling continued economic expansion above the series’ long-run average.
March’s weaker performance was due largely to a negative contribution by the manufacturing sector—notably the metal, wood, textile and food processing industries—as sentiment regarding both the overall business situation and output within the sector grew more pessimistic. Exporting industries also fared worse in March. More optimistically, the financial and hospitality sectors were broadly stable in the month, as were private consumption metrics.
Author: Joffrey Simonet, Economist