Switzerland: KOF Economic Barometer falls sharply in January
The KOF Economic Barometer—a leading composite indicator for the Swiss economy—fell from 104.1 in December to 96.5 in January, moving below the long-term average of 100. According to the KOF Swiss Economic Institute: “After reaching an interim pandemic high in September, Covid-19 is now weighing more heavily on the economy again. The pandemic is causing gloomy economic prospects at the beginning of the year.”
January’s decline was in particular driven by more negative signs from the accommodation and food services subsector, and the services sector more generally—not surprising given non-essential shops were closed in late January. The outlook for manufacturing, finance and consumer demand also grew more negative.