Switzerland: KOF economic barometer plunges at historic rate in April
April 30, 2020
The KOF economic barometer—a leading composite indicator for the Swiss economy— fell to 63.5 points in April from a revised 91.7 in March (previously reported: 92.9 points). Consequently, the indicator fell to its lowest level since March 2009 and now lies markedly below the series’ long-run average of 100 points, suggesting the economy is “in crisis mode” and will decline significantly in the short-term. To put April’s 28.2 point drop into perspective, after the collapse of Lehman Brothers in November 2008 the index fell 7.1 points.
The rapid deterioration was led by sharp declines in the indicators for manufacturing industry and services. Moreover, the indicators for foreign demand, construction and consumption were also negative in the month.
Author: Lindsey Ice, Economist