Switzerland: Economic barometer rises to nine-month high
August 30, 2013
The KOF economic barometer - a leading indicator for future GDP growth - rose to 1.36 points in August, up from a revised 1.25 points in July (previously reported: 1.23 points). The reading represents the fifth consecutive improvement in the index and the highest level since November 2012. The increase overshot market expectations, which had the index rising to 1.29 points. The KOF Institute noted that, "the year-on-year growth rate of Swiss Gross Domestic Product (GDP) in the near future can therefore be expected to be positive and even increasing currently."
The monthly improvement reflects a notable increase in the core GDP sub-component of the barometer (which excludes construction and banking). Meanwhile, the construction and banking sub-gauges remained stable over 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