(17.08.2022) The Swiss economy has not shown any improvement so far. ETHZ’s KOF Swiss Economic Institute’s barometer stood at 90.1 in July 2022, 5.1 points lower than in June (95.2), and almost 10 points below the long-term average.
After reaching a record high in May 2021 (143.22), the barometer began a downward trend falling below 100 (long-term average) in March 2022 (98.96). After a slight rise in April 2022 (102.85), the curve fell continuously until it reached 90.09 in July 2022. It had been two years since the barometer had fallen to such a low (in July 2020 it was 83.43).
This decline is due mainly to the bundle of indicators in the manufacturing industry. In addition, the hotel and catering sector and the financial and insurance services sector are showing less optimism than in previous months. Private consumption indicators as a whole are also dragging the monthly average down although the construction sector and overseas demand are cushioning the fall to some extent.
In manufacturing and construction, the main concerns relate to orders and the general business situation. On the other hand, the competitiveness situation seems to be improving.
The machine manufacturing sector is hardest hit by the adverse economic situation. The chemical and pharmaceutical industry, which was showing a degree of optimism in June 2022, is now in a similar situation to other sectors.
Last modification 17.08.2022
