Economy KOF Economic Barometer down significantly in July

The economic outlook for Switzerland has dampened somewhat in the past month. The outlook is still slightly above average. However, a somewhat more moderate pace of economic development is expected.

The KOF Barometer deteriorated by 1.7 points to 101.0 points in July, as reported by the KOF Swiss Economic Institute at ETH Zurich on Tuesday. The previous month's value for June was left at 102.7.

The barometer thus remains slightly above average. However, after remaining significantly above this value throughout the spring quarter, it is now approaching its medium-term average value of 100 points again. Although this decline is not visible for all indicators, it is nevertheless widespread, writes the KOF.

"Above all, the outlook for both foreign demand and consumer demand is deteriorating," the press release explains. However, developments in the hospitality and construction industries, in other services and in manufacturing are also viewed more negatively. The indicators for the financial and insurance services sector bucked the widespread downward trend.

In the manufacturing sector, which includes the manufacturing and construction industries, the sub-indicators for the order situation, capacity utilization and production activity in particular weighed on development, according to the report. However, the sub-indicators for inventories and orders for primary products as well as the competitive situation cushioned the decline somewhat.

Within the manufacturing industry, the outlook for the electrical, wood, glass, stone, earth and mechanical engineering sectors in particular has become gloomier. By contrast, the outlook for the metal sector, the textile and clothing industry and the paper and printing products sector is better than before.