Switzerland: KOF economic barometer hits ten-year high in September, boding well for outlook ahead
September 30, 2020
The KOF economic barometer—a leading composite indicator for the Swiss economy—rose to 113.8 in September from 110.2 in August, marking the fourth consecutive monthly improvement and hitting a ten-year high. As a result, the index moved further above the long-term average of 100, indicating a positive near-term outlook for the Swiss economy.
September’s figure was driven by positive signs regarding manufacturing, hospitality, private consumption and foreign demand. In contrast, momentum in the construction sector was less upbeat. The KOF Swiss Economic Institute highlighted that the barometer suggests a V-shaped recovery from Q2’s downturn, although cautioned the picture could change rapidly in case of a second wave of Covid-19 cases.
Author: Oliver Reynolds, Economist