"With the indicators capturing tendencies in domestic consumption and banking sector stabilising at their previous readings, the overall result is a minor decrease in the barometer."
- KOF economists
Switzerland's leading economic barometer from Zurich-based KOF showed a minor drop in September, official data revealed on Wednesday. The indicator is set to predict economic development for the upcoming six months. In September, the KOF index tumbled 0.8 points to 100.4 from an upwardly revised 101.2 points in the preceding month. The figure failed to match analysts' forecasts of 100.9 points for the reporting month.
With respect to the country's UBS Consumption indicator, the latter advanced to 1.63 points in August from July's 1.59 points. The index climbed up for the fifth month in a row, which was primarily caused by employment growth and an increase in consumption. Moreover, the retail sector's less negative outlook along with the rise in new vehicle registrations were among factors boosting the UBS Consumption Indicator. Apart from that, the bank mentioned that surprisingly warm weather conditions urged consumers to take more day-offs in Switzerland, which in conjunction with improved employment situation used to have an overall positive impact on domestic consumption and, hence, raised the indicator as well.
© Dukascopy Bank SA