"The construction industry is still the main driver of Swiss economic growth, although the turbulence in the neighboring euro-zone has eased somewhat recently"
- KOF Economic Research Agency
A closely watched KOF indicator continued leading streak, increasing for a fourth month in July, while a gauge of consumption in Switzerland moved sideways in June, suggesting the pace of growth in the Swiss economy is stable, albeit slower than expected. Figures from the KOF Economic Research Agency showed the nation's leading economic indicator stood at 1.23 in July, 0.08 points higher from June's downwardly revised 1.15. This was slightly above analysts' expectations of a 1.21 reading, and the highest since December 2010. The index forecasts the development of domestic economy in around six months' time.
Also Wednesday a report unveiled that the UBS consumption indicators was almost unchanged for the most part in June at 1.44 points, compared with 1.45 a month earlier. It trended sideways for the second straight month already. Among main contributors to this figure were the number of new car registrations and number of hotel stays, which advanced 6.1% and 0.3%, respectively. Recent figures are showing Swiss economy is outperforming the neighbouring Eurozone, country' largest trading partner, which still remain a drag on the Swiss economy. Swiss economic output quickened to 0.6% on robust consumer spending, while the 17-nation economy shrank for the sixth straight quarter in the three months through March.
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