Switzerland: KOF Economic Barometer eases but remains in positive territory in August
The KOF Economic Barometer fell to 113.5 in August from July’s 130.9. August’s result marked the worst reading since February. However, the index remained entrenched above the long-term average of 100, pointing to a positive near-term outlook for the Swiss economy.
After surging through May as the economy reopened and pent-up demand was released, the Barometer has dipped markedly since then. While some normalization in the Barometer was always to be expected, the recent uptick in Covid-19 cases and supply disruptions have likely also played a role. August’s decline was driven by a broad-based deterioration across indicators, with the exception of those from the construction industry.