Switzerland: KOF economic barometer pulls back in October
October 30, 2020
The KOF economic barometer—a leading composite indicator for the Swiss economy—fell from 110.1 in September to 106.6 in October, putting an end to four consecutive monthly improvements. However, the index was still above the long-term average of 100.
October’s decline was driven by more negative signs regarding the hospitality sector, manufacturing and foreign demand, likely due to the second wave of Covid-19 cases at home and abroad. In contrast, indicators relating to private consumption and constructions were fairly stable. Looking ahead, tighter domestic restrictions could weigh on the index in the near term.
Author: Oliver Reynolds, Economist