Switzerland: Economic sentiment hits a seven-year high in October on upbeat manufacturing, banking sectors
October 30, 2017
In October, the KOF economic barometer—a leading composite indicator for the Swiss economy forecasting a six-month period—rose by 3.0 points, to 109.1 from a revised 106.1 in September (previously reported: 105.8). October’s result vastly overshot market analysts’ expectations of a more moderate rise to 106.5 and was the strongest reading in more than seven years. Landing above the 100-point threshold, October’s print also signaled continued economic expansion above the series’ long-run average.
October’s result, according to the KOF Swiss Economic Institute, was primarily due to strong contributions from the banking and manufacturing sectors, while the accommodation and food service sectors were also more upbeat in the month. Performances were mixed across manufacturing industries, although machinery, electrical equipment and metal manufacturing each pointed upwards. Within both the manufacturing and construction sectors, employment rose and competitiveness improved. On the other hand, dampening the overall bright report were weak readings for domestic output and demand, which both declined in the month.
Author: Christopher Thomas, Economist