Business situation worsens for Swiss companies

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The KOF business status indicator for the Swiss private sector, calculated from economic surveys of around 4,500 companies, fell in April after moving little last month, KOF said. So the business situation is still more favorable than in the autumn of last year, but not as good as in January.

According to KOF, the manufacturing sector has stopped the downward trend of the previous months for now. The construction sector, retail trade and other services sectors declined. The decline in wholesale is a little stronger.

By contrast, the business situation in the hospitality industry and project planning area changed little in April. And KOF experts write that financial and insurance services have recovered for the fourth month in a row.

According to KOF, looking at the price evolution, companies’ plans show a net decrease in price increases. The peak of price adjustments in all areas has been passed for now. Price increases are still most frequently planned in the hospitality sector, but even here they are more moderate than in previous quarters.

Labor shortages continue to pose problems for companies. While complaints of staff shortages are no longer increasing in all economic sectors, it is said that not everything can be given clear. Meanwhile, there are signs of normalization in the shortage of materials and pre-products. (SDA)

Source :Blick