Switzerland’s KOF Economic Barometer rose marginally from 97.8 to 98.0 in May, extending the modest improvement seen in the previous month. However, the leading indicator remains below its medium-term average, suggesting that the outlook for the Swiss economy continues to be subdued despite signs of stabilization. The latest reading points to an economy that is expanding only modestly as businesses continue to navigate a challenging external environment.
According to the KOF, underlying developments across sectors were mixed. Manufacturing indicators continued to face pressure, highlighting ongoing weakness in industrial activity. That softness was partly offset by more favorable conditions in financial and insurance services, which helped cushion the broader economy.
On the demand side, foreign demand indicators showed some improvement, offering a potential source of support for exporters in the months ahead. Domestic demand, however, remains less encouraging. KOF noted that indicators for private consumption deteriorated, suggesting households remain cautious despite relatively stable economic conditions.
| Indicator | Previous | Actual |
|---|---|---|
| KOF Economic Barometer | 97.8 | 98.0 |
