Swiss leading indicator fell less than expected in November

According to the report from KOF Economic Research Agency, the economic barometer declines in November for the second time in a row, after a brief recovery in the summer. The barometer currently stands at 103.5 points, 2.8 points lower than in October (revised from 106.6 to 106.3 points). Economists had expected a decrease to 101. The barometer is thus moving towards its long-​term average, which means that the outlook for the Swiss economy remains subdued also in view of the current pandemic situation.

The decline of the KOF Economic Barometer in November is primarily due to a bundle of indicators from the manufacturing sector and private consumption. In addition, indicators relating to foreign demand and the other services sector send a negative signal. By contrast, indicators for accommodation and food service activities, the construction industry and the financial and insurance services sector remained virtually constant.

In the goods producing sector (manufacturing and construction), indicators for the further development of new orders and profits are in particular showing a negative development. Furthermore, sub-​indicators for the assessment of production and the overall business situation are pointing in a downward direction. On the other hand, sub-​indicators assessing the export prospects of companies show a slightly positive tendency.