Switzerland's leading indicator fell more than expected in October - KOF

According to the report from KOF Economic Research Agency, the Economic Barometer falls in October for the first time after a brief recovery phase. It now stands at 106.6 points, 3.5 points lower than in September (revised from 113.8 to 110.1 points). Economists had expected a decrease to 107.0.

The lower level of the KOF Economic Barometer in October is in particular due to negative developments of the indicator bundles of the economic sector other services, the accommodation and food service activities and foreign demand. In addition, indicators relating to the manufacturing sector also recorded a decline. By contrast, private consumption and the construction sector remained virtually stable relative to the previous month.

Within the manufacturing sector, indicators for the electrical industry, the food and beverage sector and the metal industry in particular are pointing in a negative direction. Indicators for the mechanical engineering industry, on the other hand, are sending a slightly positive signal. 

In the goods producing sector (manufacturing and construction), indicators for the assessment of export prospects, the general business situation and production capacities in particular point in a negative direction. This assessment is reinforced by indicators relating to the competitive situation. On the other hand, indicators for the assessment of inventories, employment and the purchase of intermediate goods send a positive signal.