For the second time in a row, the KOF economic barometer declined in July, but remained well above its long-term average. The Swiss economy thus confirms its strong expansion, even though the pace of recent months may be slowing.
The barometer, set up by the Institute for Economic Research (KOF) of the Swiss Federal Institute of Technology Zurich (ETHZ), fell 3.5 points during the month under review to 129.8, according to a press release on Friday. This growth falls within the range of economists surveyed by AWP, with the most optimistic counting at 132.0 points and the most pessimistic at 120.0.
Experts from the Zurich Institute point out that the outlook for manufacturing, overseas demand, construction, financial services, insurance as well as domestic consumption remain good. But they are less favorable than the previous months.
In contrast, KOF sees improvements in sectors related to housing, food and other services.
Clouds are gathering more for forecasters, especially with regard to the general business environment, Switzerland’s competitiveness and export and employment prospects.
More detailed analysis by region shows that the outlook is weakening in the metallurgy, electroplating, chemical, pharmaceutical and plastics industries.
KOF says this does not prevent indicators in these sectors from moving above average in the long term, both in terms of production and marketing.
The latter tables, according to its latest estimates at the end of June, at 4.0% on gross domestic product (GDP) this year and 2.8% in 2022.
This article was self-published. Source: ats/awp