KOF Economic Research Agency said, economic barometer has halted its downward movement, at least for the time being. At 94.7 points, however, the barometer is still well below its long-term average. The Swiss economy is therefore likely to grow with below-average rates in the upcoming months.
In October, the KOF Economic Barometer rose by 1.6 points, from 93.1 points in September (revised from 93.2 points) to 94.7 points. Economists had expected an increase to 93.9.
This increase is attributable in particular to bundles of indicators from the banking and insurance sector as well as from accommodation and food service activities. Furthermore, indicators regarding foreign demand and other services are pointing in a slightly less negative direction than in the previous month. On the other hand, indicators from the manufacturing sector record a slight decline. In the goods producing sectors (manufacturing and construction), the indicators on the number of employees and on barriers to production burden the development. Export prospects are also subdued in the coming months. However, production is expected to develop somewhat more positively, albeit still below average.
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