Swiss KOF Economic Barometer Little-Changed in May

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.

Switzerland’s KOF Economic Barometer climbed to 97.9 in April 2026, up from a nine-month low of 95.6 in March and exceeding market expectations of 95.9, driven by positive developments in manufacturing, other services, and private consumption, though the hospitality sector weakened. Indicator bundles for foreign demand, financial and insurance services, and construction remained largely unchanged. Within the producing industry (manufacturing and construction), most sub-indicators pointed to positive trends, particularly in stockpiling of intermediate goods, production barriers, and capacity utilization. However, sub-indicators for the general business situation and employment prospects faced pressure. In manufacturing, the wood, glass, stone, and earth segment, as well as food and beverage producers, saw setbacks, while the metal, paper and printing, and electrical industries showed a more favorable outlook.

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.