Switzerland: Economic sentiment stabilizes in February following January’s banking sector-related dive
In February, the KOF economic barometer—a leading composite indicator for the Swiss economy forecasting a six-month period—rose by 0.4 points, to 108.0 from a revised 107.6 in January (previously reported: 106.9). February’s result reversed January’s sharp decline, beating analysts’ expectations of a further decline to 106.0 points. Moreover, February’s reading landed above the 100-point threshold, signaling continued economic expansion above the series’ long-run average.
February’s improvement, according to the KOF Swiss Economic Institute, was due largely to strong positive contributions from the construction and hospitality sectors. Notably, the banking sector showed no improvement following an acute weakening in January. Moreover, manufacturing experienced mixed results; electrical and paper industries noted improvement, while sentiment in mechanical engineering deteriorated. On a bright note, private consumption metrics improved in the month.