(14.09.2022) The Swiss economy is heading for a difficult period. In August, ETH Zurich’s KOF Swiss Economic Institute’s barometer dropped to 86.5, 4 points below the 90.5 recorded in July. This figure is significantly below the long-term average (100).
The downward trend that began when the barometer peaked in May 2021 (143.1) continued in August 2022 and shows no sign of improvement. Although the barometer had already remained below the long-term average since May 2022 (97.1), this is the first time it has reached such a low level since July 2020, when it dropped to 83.5.
The decline observed between July and August 2022 is mainly attributable to the difficulties encountered by the consumer, manufacturing and construction sectors. Other sectors analyzed, on the other hand, showed hardly any changes during this period.
While the construction and manufacturing industries are emitting positive signals in terms of order books and production levels, the supply problems for intermediary goods and the shortage of labour are having a particularly negative impact.
The metal, chemical and textile sectors, which are part of the manufacturing industry, were particularly affected by the economic downturn in August. However, the wood and paper industry, which is more optimistic, seems to be doing well.
Last modification 14.09.2022