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Switzerland Economic Sentiment January 2020

Switzerland: KOF economic barometer surges in January

The KOF economic barometer—a leading composite indicator for the Swiss economy—rebounded from a revised 96.2 points in December (previously reported: 96.4 points) to 100.1 points in January. This marked the highest reading in over one year, and meant the indicator came in just above the long-run average of 100 points, suggesting that in the short-term the economy will expand at a broadly similar pace to the long-run average rate.

January’s increase was likely supported by the recent U.S.-China trade truce, as well as improving dynamics in Germany at the start of the year. In particular, January saw more positive signs in the manufacturing sector, with indicators for foreign demand, accommodation and food service activities, and financial and insurance services also encouraging.

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