Swiss KOF Economic Barometer Rises Further

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.

Switzerland’s KOF Economic Barometer rose to 101.7 in November 2025 from 101.5 in October, slightly above market expectations of 101.5. This was the highest level since March and remains above the medium-term average, indicating a continued improvement in the economic outlook. Indicator bundles for foreign demand and private consumption show a favorable trend. However, on the production side, the indicators for financial and insurance services and construction weakened. In the producing industries (manufacturing and construction), many indicators showed negative developments, particularly employment prospects and stocks of intermediate goods, though these were partly offset by a positive outlook for exports. Within manufacturing, the outlook is mixed. the chemical and pharmaceutical industries showed improving momentum, while the paper and printing and metal sectors deteriorates.