Switzerland: KOF economic barometer drops in September to lowest level since 2015
The KOF economic barometer—a leading composite indicator for the Swiss economy, which forecasts a six-month period—dropped to 93.2 in August, its lowest level since 2015, and below July’s revised figure of 95.5 (previously reported: 97.0 points). Subsequently, the indicator remained below the series’ long-run average of 100 points, suggesting the economy will expand at a weaker rate in the short-term than its 10-year average rate.
In September, the fall in the barometer reading was mainly driven by declining developments in the manufacturing industry, principally through less favorable order backlogs, production and the overall business situation. Declines in the service industry, accommodation and food services were also seen.
Amid intensifying global trade tensions and weak momentum in the Euro area, the KOF indicator has remained entrenched below the 100-point threshold so far this year, suggesting economic growth will likely continue to be subdued through towards the end of 2019.