(25.05.2022) Optimism remains high in Switzerland. After a slight decline in March, the KOF Business Situation Indicator jumped by 5.63 points in April to 32.55, recording its highest level since June 2011.
In April, the positive impact of the post-pandemic recovery continued to outweigh the adverse effects of the war in Ukraine and the resurgence of epidemics in Asia. Benefiting from the lifting of health restrictions at the beginning of the year, the restaurant and hospitality sector saw a significant improvement in April. Other services and the wholesale sector are also benefiting from a more buoyant climate. The finance and insurance sectors are again experiencing optimism after the sharp decline in March. In most other sectors, changes remain modest, while construction, project planning, retail trade, and manufacturing show a decline.
According to the KOF indicator, companies are planning to increase their prices. Inflation seems to be holding steady and even accelerating in some sectors, such as the catering industry.
Supply difficulties persist, particularly among manufacturing companies, of which over 57% are affected, especially those active in the construction of machinery, vehicles, and electronic and optical equipment. Additionally, in April, 51% of construction companies expressed concern about this issue, up from 37% in January 2022. Given the current global economic situation, the shortage of intermediate products is expected to continue in the medium term.
Last modification 25.05.2022
