Switzerland: KOF economic barometer plunges in March
The KOF economic barometer—a leading composite indicator for the Swiss economy—sank to 92.9 in March from a revised 101.8 points in February (previously reported: 100.9 points). Consequently, the indicator fell below the series’ long-run average of 100 points, suggesting the economy will experience a marked decline in growth in the short-term.
March’s deterioration is the first real gauge of the economic impact of the coronavirus pandemic. The slump was largely driven by deteriorating dynamics in the manufacturing sector, while export-related sectors also took a hit.
KOF noted that most survey responses for March were collected before the Federal Council implemented containment measures on 16 March, suggesting that the barometer will likely dive further in the months ahead as the impact seeps into other sectors of the economy.