Switzerland: Economic barometer rises to highest level this year
June 28, 2013
The KOF economic barometer - which is a leading indicator for future GDP growth - rose to 1.16 points in June from a revised 1.09 points in May (previously reported: 1.10 points). The reading represents the third consecutive improvement in the index and the highest level since December 2012. The increase, nonetheless, fell short of market expectations, which had the index rising to 1.19 points. The KOF Institute indicated that "the new stand of the Barometer signals that during the next few months the year-on-year growth of the Swiss Gross Domestic Product (GDP) remains positive".
The monthly improvement reflected an increase in the core GDP sub-component (which excludes construction and banking). Meanwhile, the construction sub-component remained stable, whereas the banking sub-gauge deteriorated slightly compared to the previous month.
FocusEconomics Consensus Forecast panellists expect GDP to expand 1.3% 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