Swiss leading indicator rose sharply in December - KOF

According to the report from KOF Economic Research Agency, the Economic Barometer reaches its previous year's closing level in December. The barometer, which tended to fall during the year, has thus fully recovered. However, the barometer is still below its long-​term average. The outlook for the Swiss economy at the beginning of 2020 is brightening somewhat, but remains subdued.

The KOF Economic Barometer rises by 3.8 points in December from 92.6 (revised from 93.0) to a value of 96.4. Economists had expected an increase to 94.5. The distinct increase is primarily due to bundles of indicators from the manufacturing sector. Positive signals also result from indicators covering other services and foreign demand. Indicators concerning private consumption as well as hotel and catering activities show a moderate increase.

Within the manufacturing sector, the prospects of the electrical industry are brightening up the most. Sub-​indicators for the paper and printing, the metal and the wood industry are more positive than in November. The outlook for the mechanical engineering industry, the manufacturers of food and beverages and the textile and clothing industry remain virtually unchanged compared to the previous month.

In the goods producing sectors (manufacturing and construction), indicators for the inventory show signs of recovery. Indicators for the order backlog, the overall business situation, the development of production and the development of production capacities point in a positive direction as well. Indicators regarding the purchase of intermediate products, on the other hand, are slightly negative.