"The new development of the KOF economic barometer reinforces confidence in the current upswing phase of the Swiss business cycle. The Swiss economy is expected to gain further momentum."
- KOF economists
A gauge of Swiss economic activity rose for a ninth straight month in December, bolstering the view the economy may further gather steam going forward, according to the data from the KOF Institute. The KOF Economic barometer, which projects the performance of the Swiss economy for the six months ahead, increased to 1.95 points in December, up from 1.85 a month earlier, boosted by a recovery in industry, domestic consumption and exports to the European Union. Also, the State Secretariat for Economics revised its growth outlook for 2013 upwards, expecting a further acceleration in the next two years to 2.7% in 2015.
Meanwhile, Swiss manufacturing index stayed in the positive territory, falling to 53.9 points in December compared to 56.5 a month earlier. The figure appeared to be the lowest since June, when the gauge came in at 51.9. However, despite the decline, the index remained above the crucial 50-point threshold, which separates expansion from contraction, for 11 months of 2013, pointing to recovery in the Swiss economy boosted by the SNB's currency floor, which eased pressure on exporters, as well as strengthening Eurozone's economy, the largest trading partner of Switzerland.
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