Switzerland leading indicator unexpectedly fell in June - KOF

According to the report from KOF Economic Research Agency, the Economic Barometer falls by 10.3 points in June and now stands at 133.4 points. Economists had expected an increase to 144.7. In May, the barometer reached its all-​time high of 143.7 points (revised from 143.2). The decline is in particular driven by indicator bundles for the manufacturing and the other services sector. The indicator bundles for accommodation and food service activities, foreign demand and the financial and insurance services sector also contribute to this negative development. By contrast, indicator bundles reflecting private consumption show a comparatively weak decline.

In the goods producing sector (manufacturing and construction), indicator bundles for all sub-​sectors weaken. The strongest negative contributions are provided by the order backlogs, the intermediate product purchases and the assessment of the general business situation. Only slight declines are observed for the assessment of employment, barriers to production and the storage of intermediate goods.

All bundled indicators for the sub-​sectors of manufacturing are still well above their respective long-​term averages. However, slight declines with respect to the previous month are recorded for all sub-​sectors. First and foremost, the metal industry, the paper and printing sector and the chemicals, pharmaceuticals and plastics sector. The food and beverages industry exhibits the slightest declines.