Swiss leading indicator rose sharply in May - KOF

According to the report from KOF Economic Research Agency, the economic barometer once again reaches a historical high. The slight decline that the barometer underwent in the second half of 2020 has been replaced by continuing strong increases in the spring of this year. Once again, the barometer is well above its long-​term average. The outlook for the Swiss economy for the middle of 2021 can be regarded as very positive, provided that the containment of the virus continues to progress.

The KOF Economic Barometer stands at 143.2 points in May, 6.8 points higher than in April (revised from 134.0 to 136.4 points). The sharp increase is driven by bundles of indicators from the manufacturing sector and foreign demand. An additional positive signal is sent by indicators for accommodation and food service activities followed by indicators for the other services sector. By contrast, slight negative impulses are sent by private consumption.

The positive developments within the manufacturing sector are largely driven by indicators for the textile and clothing industry followed by indicators for the chemicals, pharmaceuticals and plastics sector. Sub-​indicators for the electrical industry and the machine and vehicle construction industry also contribute to this development. By contrast, the paper and printing sector recorded slightly negative developments.

Within the goods producing sector (manufacturing and construction) indicators for assessing the competitive situation and production capacities point in a positive direction. Indicators on employment and the export opportunities also send a positive signal. By contrast, sub-​indicators for the purchase of intermediate products send a negative signal.