Switzerland's KOF Leading Indicator hit a record low in May

KOF Economic Research Agency said, in May, the KOF Economic Barometer reaches the lowest value in its history. After the exceptionally strong decline in April, the Barometer falls again, but at 6.5 points, the minus is much smaller than in the previous month. The rapid decrease of the last three months is more pronounced than, for example, during the financial crisis in 2008/2009. 

The KOF Economic Barometer falls by 6.5 points in May, from 59.7 in April (revised from 63.5) to 53.2 points. Since the beginning of the year, it has thus almost halved. While all indicator groups pulled the barometer down in April, some indicator groups now have a positive effect. However, as in April, the manufacturing sector continues to have the strongest negative impact. Indicators relating to foreign demand also have a clearly negative impact on the barometer. By contrast, private consumption and the construction industry are sending slightly improved signals.

Within the goods producing sector (manufacturing and construction), the indicators on production capacities and barriers to production in particular are weighing on development. Indicators regarding the competitive position also point in a negative direction. Bundles of indicators that reflect the order backlogs have improved slightly.

In the manufacturing sector, indicators for the metal industry, the textile industry and machine and vehicle construction determine its negative development. The prospects of the manufacturers of electrical goods are further accelerating this decline. The paper and printing industry, on the other hand, recorded a slight recovery, being one of the few sectors within the manufacturing industry with a slightly improving set of indicators.