Switzerland: KOF economic barometer dips in May
The KOF economic barometer—a leading composite indicator for the Swiss economy, which forecasts a six-month period—dropped to 94.4 points in May from 96.2 points in April. Consequently, the indicator fell further below the series’ long-run average of 100 points, suggesting the economy will expand at a softer pace in the short-term than its 10-year average rate.
May’s downturn was the result of a broad-based deterioration across sub-indicators. The banking and insurance, hospitality and service industries all performed worse, while the manufacturing sector was relatively unchanged and the construction sector posted an improvement in the month.
Amid intensifying global trade tensions, the KOF indicator has now been below the 100-point threshold for seven straight months, suggesting the economy will lose momentum following Q1’s surprisingly robust GDP outturn.