Switzerland's leading indicator rose sharply in August - KOF

According to the report from KOF Economic Research Agency, the economic barometer rose sharply in August, now for the third month in a row. The plus was almost the same as in the previous month, when the barometer showed the strongest monthly increase since the beginning of the calculated values in the early 1990s. The crash in the spring of this year was, however, also the worst in the history of the barometer. According to this, the Swiss economy is in the upswing phase of what appears for the time being a V-​shaped recession.

The KOF Economic Barometer rose by 24.2 points in August. After 86.0 (revised from 85.7) in July, the barometer now points to 110.2. This is well above the long-​term average. Economists had expected an increase to 90. The indicator groups for manufacturing, the hospitality sector and foreign demand are primarily responsible for the current increase. To a lesser extent, the indicators relating to financial and insurance services as well as other services contributed to the improvement. The construction sector, on the other hand, recorded a slight deterioration.

In the manufacturing sector, the outlook has brightened in all sectors. This was particularly pronounced in the metal and chemical, electrical and textile industries.

In the goods producing sector (manufacturing and construction), the indicators related to incoming orders, employment and the business situation were more favorable. The other aspects taken into account in the surveys, such as the assessment of preliminary products, inventories and the competitive position, did at least not generate negative impulses.