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- Switzerland's leading indicator fell more than expected in July
Switzerland's leading indicator fell more than expected in July
According to the report from KOF Economic Research Agency, in July, the Economic Barometer falls further below its May peak. Despite this second decline in a row, the barometer level is clearly above the long-term average. The economy is still on a strong expansion path, although the high pace of recent months may not to be sustained.
The KOF Economic Barometer falls by 3.5 points to 129.8 points in July. In June, the barometer stood at 133.3 (revised from 133.4) and in May at 143.6 (revised from 143.7). Despite this second consecutive decline, the KOF Economic Barometer's above-average reading points to a very favourable economic development in the coming months. The outlook for manufacturing, foreign demand, construction, financial and insurance services as well as private consumption remains favourable but is not quite as positive as in the previous month. In contrast, the outlook for accommodation and food service activities and for other services is improving.
In the goods producing sector (manufacturing and construction), indicators for all aspects of business activity are weakening. The clouding is particularly pronounced for the general business situation, the competitive position as well as export and employment prospects.
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