Switzerland’s KOF Economic Barometer rose to 103.5 in July from 102.1 in June, comfortably beating expectations of 100.7 and reinforcing signs that the economy is regaining momentum. The latest reading extends June’s move back above the long-run average of 100 and marks the highest level since February, suggesting the sharp deterioration seen in March has increasingly given way to a sustained recovery in economic activity.
KOF said the improvement was broad-based across the production side of the economy. Financial and insurance services, other services, construction and manufacturing all pointed to a stronger outlook, while demand indicators remained resilient. Foreign demand and private consumption were broadly unchanged, indicating that the improvement is being driven less by a surge in spending than by strengthening business conditions. Within manufacturing and construction, firms reported a more favorable competitive environment, improved profit prospects, fewer production barriers and a better overall business climate, although indicators for inventories of intermediate goods and production activity softened somewhat.
The latest survey suggests Switzerland’s recovery is becoming more firmly established after the temporary setback earlier this year. Sector performance remains uneven, with the electrical and machinery industries continuing to strengthen while textiles and wood, glass and stone-related industries lag behind. Nevertheless, the broad improvement across both manufacturing and services, together with the barometer’s continued move above its medium-term average, points to above-trend economic growth in the months ahead if external conditions remain supportive.
Economic Data
| Indicator | July | June |
|---|---|---|
| KOF Economic Barometer | 103.5 | 102.1 |
| Market Expectation | 100.7 | — |
| Monthly Change | +1.4 pts | — |
Key Takeaways
- The KOF Economic Barometer rose to 103.5, exceeding expectations of 100.7 and marking the highest reading since February 2026.
- The index has now remained above its medium-term average of 100 for a second consecutive month, reinforcing signs of above-trend economic growth.
- The improvement was broad-based across the production side, with manufacturing, construction, financial and insurance services, and other services all pointing to a stronger outlook.
- Foreign demand and private consumption remained broadly stable, suggesting the recovery is being driven by improving business conditions rather than stronger demand.
- Within manufacturing and construction, firms reported better competitiveness, stronger profit prospects, fewer production barriers and an improved general business environment.
- Some mixed signals remain, with production activity and inventories of intermediate goods softening, while the electrical and machinery industries outperformed and textiles and wood-related industries lagged.
- Overall, the survey suggests Switzerland’s economy has continued to recover from the March slowdown and is entering the second half of the year with firmer momentum.
