Switzerland: Economic barometer climbs to highest level in nearly a year
September 27, 2013
The KOF economic barometer - a leading indicator for future GDP growth - jumped to 1.53 points in September, up from a revised 1.37 points in August (previously reported: 1.36 points). The reading represents the sixth consecutive improvement in the index and the highest level since November 2012. The increase overshot market expectations of a rise to 1.47 points. The KOF Institute stated that, "the year-on-year growth rate of Swiss gross domestic product (GDP) can therefore be expected to be positive and even gaining momentum in the next few months."
September's improvement reflects an increase in the core GDP sub-component of the barometer (which excludes construction and banking). Meanwhile, the construction and banking sub-gauges pointed in different directions. Construction improved notably over the previous month, while banking recorded a decline.
FocusEconomics Consensus Forecast panelists expect GDP to expand 1.7% in 2013, which is up 0.3 percentage points from last month's projection. For 2014, the panel expects economic growth to accelerate slightly to 1.8%.
Author: Ricardo Aceves, Senior Economist