"The Swiss economy will have to get used to a weaker economic momentum"
- VP Bank economist Bernd Hartmann
Swiss KOF economic barometer, which predicts the direction of the economy over the following 6 months, grew unexpectedly in September. KOF indicator climbed to 1.67 points, up from 1.59 in the previous month, while it was expected to fall to 1.54 this month. The outlook for the Swiss economy is still positive, as domestic demand remains strong and exports to the EU showed some improvement.
"The strength in the KOF seems exaggerated given the global situation," said Informa Global Markets analyst Nikola Stephan. "It remains difficult to see that the KOF can keep up its strength and a turnaround still looks likely in the months ahead."
"The Swiss economy will have to get used to a weaker economic momentum," said VP Bank economist Bernd Hartmann. "There is a lack of fresh impulses in the shape of investments despite record low interest rates. The question is: Where is growth in the near future supposed to come from?"
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies added 0.71 per cent to 6,541.97. The broader Swiss Performance Index gained 0.64 per cent to 6,049.36.
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