Swiss Business Confidence Weakens

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.

Switzerland’s KOF Economic Barometer rose by 1.7 points to 103.4 in December 2025, reaching its highest level since September 2024 and exceeding market expectations of 101.4. The positive trend is particularly evident on the production side, with the indicator bundles for manufacturing showing a favorable outlook. In contrast, the bundles for private consumption and foreign demand remain under pressure. Within the producing industries (manufacturing and construction), most sub-indicators, including employment prospects, stockpiling of intermediate goods, and the general business situation, point to a bright outlook. However, sub-indicators for production activity and order backlogs are weakening. Many sub-indicators within manufacturing reflect positive developments, especially those for the metal industry and the wood, glass, stone, and earth segment. However, this is slightly tempered by weaker sub-indicators for food and beverage producers and chemical and pharmaceutical industries.