- KOF Economic Research Agency
Swiss KOF leading economic indicator improved for a second straight month in May, adding to signs that the economy will continue gaining momentum even despite deepening Eurozone recession. The index, compound by the KOF Economic Research Agency, rose 0.06 points to 1.10 this month, up from an upwardly revised 1.04 in the preceding month and outpacing analysts' expectations of a 1.07 reading. As the economy is expected to improve further at least during the next six months, the institute noted that the prospects for Swiss industry and construction are now much brighter and the situation in banking is stable.
The latest KOF outlook follows government data unveiled on Thursday, which showed that Swiss economy expanded at a faster pace than it was initially expected, with private consumption helping it perform better than the neighbouring Eurozone. However, the latest data contrasts with other economic survey published by the ZEW Institute and Credit Suisse, which showed economic expectations, reached the lowest level in four months in May. Even as the Swiss economy is outperforming the Eurozone countries, risks are high and the outlook for domestic consumption is somewhat gloomier than earlier this year.
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