Switzerland KOF Leading Indicator unexpectedly declined in June

KOF Economic Research Agency said the economic barometer remains almost unchanged in June compared to the previous month. It now stands at 93.6 points, 0.2 points lower than in May (revised from 94.4 to 93.8 points). Economists had expected an increase to 94.9. The falling trend seen since the beginning of the year is now leveling off. The economic outlook for Switzerland will remain subdued by mid-2019.

The almost unchanged level of the KOF economic barometer in June is mainly due to the balancing tendencies in foreign demand, the manufacturing industry (manufacturing and construction) and private consumption. While indicators of foreign demand show a positive trend, the indicators in manufacturing and private consumption, bundled in almost equal strength, point in the opposite direction. There is also a slight weakening in the banking and insurance industry.

The negative development in the manufacturing sector is mainly attributable to indicators on the situation of primary products and order backlogs. The assessment of the competitive situation, the employment situation and the export prospects remains unchanged.

Within the manufacturing sector, there is a mixed but mostly slightly gloomy picture. Indicators in the metal sector as well as in mechanical and automotive engineering point in a positive direction, while indicators from the chemical industry, the electrical industry and food and beverage manufacturers indicate a negative trend.