"The prospects for the Swiss economy are noticeably bleaker in the new year"
- KOF Swiss Economic Institute
The momentum of the Swiss economy slowed for the third consecutive month in December, adding to concerns that deepening Eurozone crisis weighed on business confidence. According to the KOF Swiss Economic Institute, a gauge of the Swiss economic performance during the next six month dropped 1.28 points in December, down from 1.50 points in the preceding month.
"In comparison to previous months the cooling trend gathered some momentum in December. The prospects for the Swiss economy are noticeably bleaker in the new year," the KOF said in a statement.
In a separate report, the Credit Suisse said Swiss manufacturing sector contracted last month, however, at a slower pace than was initially expected. Swiss Manufacturing Purchasing Managers' Index improved to 49.5 in December, from 48.5 a month ago, beating analysts' median estimate of 48.4. Despite the improvement, the reading still remains below the 50 line, which separates growth from contraction.
"The KOF indicator was odd in the last months, it had been much stronger than the PMI, but it now seems to be falling back into line," said Sarasin economist Jan Poser.
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