KOF Sees Initial Improvements in Outlooks

SWITZERLAND DEC KOF BAROMETER 92.2 (FCST 91.0); NOV 89.2r

• Swiss economic outlooks brightened more than expected in December, as the KOF barometer increased by three points to 92.2.
• This is the first improvement since August, yet the index remains substantially weaker than the long-term average of 100.
• Both manufacturing and services provided the bulk of the boost, and to a lesser degree financial and hospitality sectors.
• Manufacturing employment and business outlooks are positive, yet the assessment of production remains deeply negative.
• As such, the December uptick is largely a positive step in the stabilisation of the indicator. However, as this improvement is largely based on future expectations it remains unlikely to feed into improved production levels in the short-term.

Source: KOF Swiss Economic Institute