by The reading of the KOF Economic Barometer dropped drastically in March and is now with 92.9 well below its long-term average. Accordingly, the Swiss economy can be expected to see a marked decline in growth rates in the near future. This plunge of the Barometer reflects the first economic consequences of the accelerated spread of the Coronavirus. The KOF Economic Barometer fell by 8.9 points in March, from 101.8 (revised from 100.9) down to 92.9. The Barometer thus plunged from its long-term average about as low as after the minimum exchange rate for the Swiss franc was abandoned in January 2015. Its troughs at the time of the economic crisis in 2008/9 were still significantly lower, but a large part of the survey responses underlying the Barometer were
Topics:
KOF Zurich considers the following as important: 2) Swiss and European Macro, newsletter, Switzerland KOF Economic Barometer
This could be interesting, too:
Alex J. Pollock writes How Does the Federal Reserve Fit into Our Constitutional Order?
Adnan Al-Abbar writes What Can Carl Menger Teach Us about Falafel Sandwiches?
James Bovard writes Biden Perpetuates Washington’s Idiotic Steel Trade Policies
Alex J. Pollock writes The Federal Reserve’s Capital Has Now Plummeted to Negative 1 Billion
|
The KOF Economic Barometer fell by 8.9 points in March, from 101.8 (revised from 100.9) down to 92.9. The Barometer thus plunged from its long-term average about as low as after the minimum exchange rate for the Swiss franc was abandoned in January 2015. Its troughs at the time of the economic crisis in 2008/9 were still significantly lower, but a large part of the survey responses underlying the Barometer were received in the first half of March, i.e. before the measures taken by the Federal Council on 16 March severely restricted economic activity in Switzerland. None of the indicator bundles feeding into in the barometer were able to counteract this slump of the barometer, which has so far been largely driven by the manufacturing sector. The weakest negative impulses are stemming from the export related indicators. The downturn in sentiment in the goods producing sectors (manufacturing and construction), which is reflected by the barometer, included all branches without exception, the textile and metal industries most of all, and the food industry least of all. It was largely driven by the assessment of orders and production. |
KOF Economic Barometer, March 2020(see more posts on Switzerland KOF Economic Barometer, ) Source: kof.ethz.ch - Click to enlarge |
You Might Also Like
KOF Economic Barometer: Stabilization at a low level
The KOF Economic Barometer has halted its downward movement, at least for the time being. At 94.7 points, however, the barometer is still well below its long-term average. The Swiss economy is therefore likely to grow with below-average rates in the upcoming months.
Switzerland Unemployment in September 2019: Unchanged at 2.1 percent, seasonally adjusted unchanged at 2.3 percent
Registered unemployment in September 2019 – According to surveys by the State Secretariat for Economic Affairs (SECO), at the end of September 2019, 99’098 unemployed people were enrolled in the Regional Employment Centers (RAV), 454 less than in the previous month. The unemployment rate remained at 2.1% in the month under review.
Swiss Producer and Import Price Index in September 2019: -2.0 percent YoY, -0,3 percent MoM
15.10.2019 – The Producer and Import Price Index fell in September 2019 by 0.3% compared with the previous month, reaching 101.1 points (December 2015 = 100). This decline is due in particular to lower prices for petroleum products and scrap. Compared with September 2018, the price level of the whole range of domestic and imported products fell by 2.0%.
Steady euro area growth and rise in core inflation
According to Eurostat’s preliminary figures, euro area GDP grew by 0.2% quarter on quarter in Q3, the same pace as in Q2 and in line with our expectations. Country wise, France, Italy and Spain grew at the same pace in Q3 as in Q2. In particular, household and investment spending grew at a solid pace in both France and Spain. The preliminary GDP figure for Germany will not be released until 14 November.
Currencies: do it with style
Our scenario of ongoing global growth moderation and elevated political uncertainties should, we believe, support defensive currencies. We consider a currency ‘defensive’ if it is likely to remain resilient should global risk appetite falter.
Switzerland GDP Q3 2019: +0.4 percent QoQ, +1.1 percent YoY
Switzerland’s GDP rose by 0.4% in the 3rd quarter of 2019, after increasing by 0.3% in the previous quarter. Exports of chemical and pharmaceutical products and energy were key contributing factors. In other areas, the impact of the subdued international environment was felt more strongly. The economic slowdown is being borne out on the whole.
Core sovereign bonds 2020 Outlook
This website uses cookies to enhance user navigation and to collect statistical data. To refuse the use of cookies, change your settings or for more information, please click on the following link: Cookies policy. By continuing to browse this website, you accept the use of cookies for the above purposes.
ECB: Preview of the review
We see the ECB remaining on hold throughout next year although we believe it could tweak some of the technical parameters of its toolkit. The first press conference of any new ECB President is an event in itself, and this time will be no different. Christine Lagarde’s debut this week will understandably attract a lot of attention as the media and market participants scrutinise both form and substance.
Tags: newsletter,Switzerland KOF Economic Barometer