Swiss KOF Economic Barometer Little-Changed in May

Switzerland's KOF Economic Barometer rose to 103.5 in July 2026 from an upwardly revised 102.1 in June, beating market expectations of 101.0 and reaching its highest level since February. The reading points to improving momentum in the Swiss economy over the coming months. Strength was broad-based across the production side, with indicator bundles for financial and insurance services, other services, construction, and manufacturing all signaling a more favorable outlook. Indicators for foreign demand and private consumption remained broadly stable. Within the production sector, competitiveness, profitability, business conditions, and the assessment of production constraints all improved, but expectations for production activity and intermediate goods inventories softened. Within manufacturing, prospects weakened for the textile industry and the wood, glass, stone, and earth materials segment. The electrical industry and machinery and equipment continued to show stronger momentum.

Switzerland's KOF Economic Barometer climbed to 101.2 in June 2026 from an upwardly revised 98.6 in May, reaching its highest level in four months and well above the market consensus of 98.2. After several months below its medium-term average, the index has now moved slightly back above it. The reading signaled a noticeable improvement in Switzerland's six-month economic outlook, underpinned by robust manufacturing indicators and improving prospects for foreign demand and private consumption. The majority of indicator bundles within the producing industry, including manufacturing and construction, reflect this positive outlook. Within manufacturing, sentiment improved broadly across sub-sectors, particularly textiles, machinery and equipment, and paper and printing products.

Switzerland’s KOF Economic Barometer came in at 98.0 in May 2026, slightly up from a revised 97.8 and matching market expectations. The reading signals a subdued economic outlook. On the production side, manufacturing indicators face pressure, partly offset by positive trends in financial and insurance services. On the demand side, foreign demand shows improvement, while private consumption indicators decline.