Switzerland’s KOF Economic Barometer rose from a revised 107.5 in August to 109.1 in September, beating the 105.8 consensus and extending a run of consecutive monthly increases. The index remains clearly above its medium-term average, prompting the KOF Swiss Economic Institute to say the outlook for the Swiss economy “remains favourable.”
The improvement was relatively broad, with particularly positive developments in manufacturing, services and construction. Within manufacturing and construction, indicators for exports, inventories of intermediate products and the general business situation strengthened. However, the picture was not uniformly positive: indicators for foreign demand and financial and insurance services weakened, while employment prospects remained under pressure. Machinery and equipment manufacturing also slowed, contrasting with stronger signals from chemicals and pharmaceuticals, paper and printing, and textiles.
The September rise therefore points to continued improvement in Swiss business momentum, rather than an across-the-board acceleration. The sequence from 104.2 in July to 107.5 in August and 109.1 in September shows a clear near-term strengthening on the revised series. Some caution is warranted when comparing the latest reading with earlier vintages, however, as September also incorporated KOF’s annual methodological update, including changes to the indicator pool.
Data Summary
| Indicator | Previous | Current | Expected |
|---|---|---|---|
| KOF Economic Barometer | 107.5 | 109.1 | 105.8 |
August was revised up from 106.7 to 107.5 as part of KOF’s annual 2026 update.
Components
| Component | September trend |
|---|---|
| Manufacturing | Improved |
| Services | Improved |
| Construction | Improved |
| Foreign demand | Weakened |
| Financial and insurance services | Weakened |
| Export outlook | Improved |
| Employment prospects | Weakened |
KOF highlighted particularly positive developments in manufacturing, services and construction, while foreign demand and employment indicators remained softer.
Key Takeaways
- The KOF Economic Barometer rose from 107.5 to 109.1, comfortably beating the 105.8 consensus and remaining well above its medium-term average.
- The near-term trend remains constructive, with the revised series rising from 104.2 in July to 107.5 in August and 109.1 in September.
- Improvement was relatively broad across manufacturing, services and construction, supporting KOF’s assessment that the Swiss economic outlook remains favorable.
- The details were not uniformly strong: foreign demand, financial and insurance services, and employment prospects weakened.
- September incorporated KOF’s annual methodological revision, so comparisons with previously published historical readings should be treated carefully.
- Overall, the report points to strengthening Swiss business momentum, but not an across-the-board acceleration.
