Economic outlook for Switzerland brightens only slightly

In May, the KOF Economic Barometer rose by just 0.2 points to 98.0 points, as reported by the KOF Institute at ETH Zurich on Friday. The leading indicator has thus recovered further after the fall in March (revised 95.7 points), but has not managed to jump back above 100 points.

The May barometer was at the lower end of expectations. Economists surveyed by AWP had expected values between 97.5 and 99.0 points. The KOF Barometer is a leading composite indicator that is based on a large number of indicators and is intended to show how the economy will develop in the near future. Values above 100 points indicate growth.

Subdued consumer demand

In the wake of the conflict in the Middle East, the picture for the Swiss economy is currently mixed. The KOF noted that the indicators on the outlook included in the economic barometer remain mixed.

According to the press release, the indicators for the manufacturing sector in particular remain under pressure. However, this was cushioned by positive developments in financial and insurance service providers.

On the demand side, the indicators for foreign demand have recently shown a more favorable outlook, it continued. At the same time, a downward trend in consumer demand was identified.

Export industry remains under pressure

The KOF economists also saw a mixed picture in the analysis of the manufacturing industry alone. While the indicators for the order situation, the inventory situation and the general business situation showed a positive outlook, those for the export industry and production activity continued to decline.

In the sub-sectors of industry and construction, according to the KOF Economic Barometer, the indicators for paper and printing products in particular developed positively. In contrast, the indicators for the textile and electrical industries, among others, had to take a back seat, according to the report.