Switzerland: Economic barometer rises to highest level in over one year
September 27, 2012
The September KOF economic barometer, which is a leading indicator for future GDP growth, rose to 1.67 points from the revised 1.59 points recorded in August (previously reported: 1.57 points). The index climbed to its highest level since July 2011 and beat market expectations, which had seen the indicator falling to 1.50 points. Nonetheless, according to the Institute, "the dynamic of the KOF Economic Barometer that was observed in the recent months is decelerating", thus reinforcing the notion that GDP growth may lose some momentum in the coming months. The monthly improvement reflected an increase in the core GDP sub-indicator (which excludes the construction and banking sectors) as well as in the banking sub-gauge. Meanwhile, according to the KOF, the construction component showed "a sideways movement".
Author: Ricardo Aceves, Senior Economist