The KOF Economic Barometer in Switzerland held steady at 97.0 in August 2019, easily beating market expectations of 94.5. Somewhat more favourable signals than before are coming from indicators of foreign demand and domestically from consumer prospects and manufacturing; while accommodation and food service activities, financial, insurance and other services as well as construction tend to point to stagnation or slight deterioration in economic sentiment. In the goods producing sectors (manufacturing and construction), the barometer is strengthened mostly by indicators on order backlog and inventories. The remaining indicators are emitting only negligible signals. Within manufacturing, the outlook has become more favourable especially for machinery, the metal industry, the chemical industry as well as for food and beverages. On the other hand, the outlook has mainly worsened for the paper and the electrical industries. Business Confidence in Switzerland averaged 100.49 Index Points from 1991 until 2019, reaching an all time high of 119.30 Index Points in November of 2009 and a record low of 71.80 Index Points in December of 2008.
Business Confidence in Switzerland is expected to be 95.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Business Confidence in Switzerland to stand at 98.00 in 12 months time. In the long-term, the Switzerland Business Confidence is projected to trend around 101.00 Index Points in 2020, according to our econometric models.