Data published by the Swiss Economic Institute (KOF) showed that the index of leading economic indicators rose slightly in September, recording the second monthly increase in a row and reaching the highest level since May, indicating a steady recovery in the Swiss economy.
According to the report, the index of leading economic indicators rose to 105.5 points from 105.0 points in August (revised from 101.6 points). Economists had expected the index to fall to 102.0 points.
KOF said that almost all indicator bundles for the economic sectors point to a more favorable outlook than before. Above all, the indicators for the manufacturing industry and, to a lesser extent, those for the financial and insurance services, the construction industry and the other services. In the hospitality industry, the rather above-average prospects remain almost unchanged. On the demand side, the indicators for consumer demand are also almost unchanged, pointing to a rather above-average further development. By contrast, the indicators for future foreign demand are weakening.
Earlier this month, the Federal Government Expert Group on Business Cycles maintained its earlier projection of 1.2% growth for the Swiss economy in 2024, continuing the below-average growth seen in 2023. Looking ahead to 2025, the Expert Group forecasts GDP growth, adjusted for sporting events, at a slightly below-average rate of 1.6% (June forecast: 1.7%), which is then only slightly below the long-term average of 1.8%.