The Barometer of the Center for Economic Research (KOF), which has been declining since May, continued to decline in September. The indicator fell by 2.9 points from the previous month to 110.6 points.
After having reached an all-time high in May at 143.6 points, the KOF barometer fell for a 4th consecutive month. The contraction, however, was less pronounced than in the previous months.
According to ETHZ, the barometer fell for the fourth consecutive month after reaching an all-time high of 143.6 points in May. However, the contraction was less pronounced than in previous months. The AWP agency surveyed economists who predicted an average of 106 to 112 points for the period under review.
Although the recovery of the Swiss economy from the Covid-19 pandemic is thus slowing down somewhat, it should nevertheless continue in the coming months, the Zurich-based forecasters note. They attribute the downturn in September mainly to indicators for foreign demand.
Indicators for the manufacturing sector are sending out a further negative message, followed by those for the other services sector. Meanwhile, finance and insurance sector indices are slightly up.
KOF noted negative development in numerous manufacturing industries, including metal, paper, printing, machine and vehicle construction, as well as textiles. Other industries, including the chemical, pharmaceutical, and plastics sectors, as well as food and beverage manufacturers, remained virtually unchanged from last month.
Across the manufacturing sector (both manufacturing and construction), the order indicators show a positive trend. Conversely, the sub-indicators of employment prospects, competitiveness, and production development all show declines, resulting in a negative balance for manufacturing sector indicators.