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- Switzerland: KOF Leading Indicator rose sharply in January
Switzerland: KOF Leading Indicator rose sharply in January
KOF Economic Research Agency said that Economic Barometer rises in January. After already taking a step upwards in December, it is now back to its long-term average value. The barometer did not reach this level throughout 2019. The Swiss economy can free itself somewhat from its shackles.
The KOF Economic Barometer rises by 3.9 points in January, from 96.2 in December (revised from 96.4) to 100.1 points. Economists had expected an increase to 97.0.
Together with the rise in December, it has thus climbed by 7.6 points within two months. The indicator bundle for manufacturing is no longer as unfavourable as before and the prospects for other services have improved. In addition, the changes in the indicators for foreign demand, accommodation and food service activities, financial and insurance services and construction are slightly positive. The private consumption prospects are practically unchanged.
In the goods producing sectors (manufacturing and construction), the indicators for production and production capacities are more favourable than at the end of 2019. In addition, personnel planning is no longer dampening the barometer as much as in the previous month. By contrast, the development is slightly muted by the indicators for the competitive position.
Within manufacturing, indicators for almost all industries are recovering. This improvement is particularly noticeable in machinery, in other manufacturing industries and in the chemicals, pharmaceuticals and plastics industry. By contrast, the electrical industry and the metal industry cannot entirely keep pace.
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