"It appears we are seeing the KOF bottoming out, especially in light of the strengthening in PMI"
- Bank Sarasin Jan Poser
Switzerland's economic momentum slipped for the fourth consecutive month in February, however, a smaller-than-expected drop implies a chance it will turn a corner next month. The KOF Swiss Economic Institute said a gauge of economic sentiment, which was designed to predict future economic performance in roughly six months, slipped to 1.03 points this month, down from a revised 1.12 points in January. Analysts, however, predicted a steeper decline, down to 1.00 points. Swiss economy returned to growth in the third quarter of 2012 and even expanded at the fastest pace since 2010, despite the fact that the Eurozone economy fell into a recession. This is adding to signs that Switzerland will be able to continue gaining momentum in 2013.
"It appears we are seeing the KOF bottoming out, especially in light of the strengthening in PMI," Bank Sarasin Jan Poser said. "Maybe next month already we'll see that the KOF has actually bottomed (out), reflecting a recovery in the Swiss economy."
"Momentum is improving, we've seen this with the January PMI which is above the 50 threshold, so in growth territory again," Credit Suisse's Maxime Botteron said.
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