Switzerland: Economic barometer jumps to the highest level in over two years
November 29, 2013
The KOF economic barometer - a leading indicator for future GDP growth - jumped to 1.85 points in November, up from a revised 1.71 points in October (previously reported: 1.72 points). The reading represents the eighth consecutive improvement in the index, which now sits at the highest level since July 2011. The increase was just above market expectations of a rise to 1.84 points. The KOF Institute pointed out that, "the positive trend is mainly driven by domestic consumption."
November's improvement reflects an across-the-board increase in all three areas of the index. According to KOF, although the Core GDP keeps improving strongly, the construction and financial modules are losing momentum. However, "overall, the positive tendencies dominate."
FocusEconomics Consensus Forecast panelists expect GDP to expand 1.2% in 2013, which is up 0.1 percentage points from last month's projection. For 2014, the panel expects economic growth to accelerate slightly to 1.6%.
Author: Ricardo Aceves, Senior Economist