Switzerland: KOF Leading Indicator falls sharply in September

According to the report from KOF Economic Research Agency, in September, Economic Barometer falls to its lowest level since 2015. It now stands at 93.2 points, 2.3 points lower than in August (revised from 97.0 to 95.5 points). The downward tendency that has been evident since the beginning of the year is now continuing. The economic outlook for Switzerland remains gloomy towards the end of 2019.

The lower level of the KOF Economic Barometer in September is primarily due to declining developments in the manufacturing industry. The indicator bundle for the service industry and the accommodation and food service industry slightly reinforce this decline. By contrast, private consumption, foreign demand and the construction industry remain stable relative to the previous month.

In the goods producing sector (manufacturing and construction), indicators used to assess the order backlogs, the development of production and the overall business situation are mainly responsible for its negative development. By contrast, the assessment of the competitive position and export prospects remains virtually unchanged compared to the previous month.