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As ETH economic research institute KOF announced on Friday, the economic barometer for the current month dropped to 90.8 points, a 0.6 percentage point drop from May. May value revised from 90.2 points to 91.4 points.
The barometer is therefore further below its medium-term average and approaching its previous low. This was marked 89.3 points in November 2022.
However, experts surveyed by the AWP news agency had predicted slightly lower values for June, between 87.0 and 89.0 points.
According to experts, the downward movement is mainly due to a number of indicators recording foreign demand. Slightly negative signals were also received from the private consumption and other services sectors. Indicators for manufacturing and construction, on the other hand, point to some positive aspects.
KOF, meanwhile, maintains that a predominantly positive picture has emerged in the manufacturing industry. The strongest positive factors are indicators for evaluating the camp, followed by indicators for employment prospects. Indicators for business and order status also pointed to the positive side. On the other hand, a slightly negative signal is sent from the production expectations.
According to KOF, in the manufacturing sector, the indicators of the electronics industry give the strongest positive signals, while the mechanical engineering and vehicle making, as well as the chemical and pharmaceutical industries also point to the positive side. However, negative indicators came from the paper and printing industry.
The KOF economic barometer is a leading indicator for the development of the Swiss economy, which consists of a large number of individual indicators. There are 608 of them since the last revision. These are combined into an overall indicator using statistically determined weights.
Another important leading economic indicator, along with the Purchasing Managers Index (PMI), will be released on Monday, July 3rd.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
