Swiss Business Confidence Weakens

Switzerland’s KOF Economic Barometer dropped to 96.1 in March 2026, the lowest level since June 2025, down from a revised 103.8 in February and below expectations of 102. The weaker outlook is reflected across both the production and demand components of the barometer, with manufacturing and external demand indicators showing particularly sharp declines. Within the producing sector, which includes manufacturing and construction, most business activity indicators point to deterioration, especially those related to exports, overall business conditions, and order backlogs, all of which remain under pressure. Sentiment in manufacturing is broadly negative. While indicators for food and beverages show slight improvement, those for machinery and equipment, the electrical sector, metals, and paper and printing are weakening more significantly.

Switzerland’s KOF Economic Barometer went up to 104.2 in February 2026, the highest since August 2024, following an upwardly revised 103.3 in January and beating forecasts of 103. The reading showed that the positive outlook for the Swiss economy is reinforced. Both the indicator bundles for consumption as well as for foreign demand show a favourable outlook. The developments among the production side indicator bundles are mixed. In particular, the indicator bundle for manufacturing is experiencing a setback. Within the producing industry (manufacturing and construction), the sub-indicators for stockpiling of intermediate goods as well as for the general business situation are particularly under pressure. These negative developments are, inter alia, cushioned by a more favourable outlook for the sub-indicators for employment prospects and for exports.

Switzerland’s KOF Economic Barometer declined to 102.5 in January 2026, down from an upwardly revised 103.6 in December and below market expectations of 103.0. The slowdown was driven mainly by weaker indicator bundles for hospitality and construction. In contrast, indicator bundles for manufacturing and financial and insurance services showed improvement. Within the broader producing sector, which includes manufacturing and construction, employment expectations, assessments of production constraints, as well as profit, and export indicators remained under pressure. However, the outlook for the general business situation and competitive conditions improved. Manufacturing signals were mixed overall. Indicators for the electrical industry and the wood, glass, stone, and earth segment weakened, while indicators for machinery and equipment, the metal industry, and paper and printing products pointed to a more upbeat outlook.