Switzerland: KOF Leading Indicator rose sharply in July

According to the report from KOF Economic Research Agency, economic Barometer has climbed in July. After the indicator value remained stable in the previous month, the economic prospects are no longer quite as unfavourable as before. However, the Barometer continues to indicate below-average momentum.

The KOF Economic Barometer has risen by 3.3 points in July to 97.1 from 93.8 in June (revised from 93.6). Economists had expected a decrease to 93.0.

Slightly more favourable signals than before are coming from manufacturing, other services, accommodation and food service activities as well as financial and insurance services. Construction is contributing slightly to the positive development. Consumer prospects are practically unchanged. On the other hand, the indicators for demand from abroad have a dampening effect.

In the goods producing sectors (manufacturing and construction), the barometer is strengthened above all by indicators on the competitive situation and the number of employees. On the other hand, the indicators for the purchase of intermediate products are directed downwards. On the whole, the prospects for the manufacturing industry have brightened visibly.