Switzerland: KOF economic barometer edges above long-term average in February
February 28, 2020
The KOF economic barometer—a leading composite indicator for the Swiss economy—rose to 100.9 points in February from 100.1 points in January. This marked the highest reading since September 2018, and pushed the indicator above the series’ long-run average of 100 points, suggesting the economy will expand at a stronger pace in the short-term relative to its long-run average rate.
February’s rise was largely due to improving sentiment in the manufacturing sector, while dynamics in the other sectors including foreign and consumer demand, and services were relatively unchanged. The financial sector was the only drag on the indicator in the month. That being said, KOF noted that February’s upbeat figure was “based on the mood before the outbreak of the coronavirus in northern Italy”, which is likely to weigh on consumer confidence in the short-term, particularly as a number of cases have been confirmed in Switzerland in recent days.
Author: Lindsey Ice, Economist