Switzerland: Leading economic indicator jumps to highest level in 11 months
July 30, 2015
Switzerland’s KOF economic barometer—a composite leading indicator for the Swiss economy in the next six months—jumped from the revised 89.8 points (previously reported: 89.7 points) in June to 99.8 points in July, thus reaching the highest level in nearly a year.
The KOF Swiss Economic Institute commented that while the strong Swiss franc continues to be a burden on the economy, the first shockwave after the removal of the exchange-rate cap in clearly fading. July’s increase mainly reflected an improvement in the manufacturing sector. In addition, sentiment in the banking sector and construction are no longer as gloomy as they have been in recent months. The KOF added that “the increase of the Barometer to the long-term mean value does not yet mean that the Swiss economy is in ‘normal mode’ again. However, the KOF Barometer does indicate that the Swiss economy hopes to be able to come to terms with the first shock of the Swiss franc in the next few months.”
Author: Dirina Mançellari, Senior Economist