Swiss KOF Index for October beats expectations, hits 33-month high

The Swiss KOF business confidence index for the month of October beat expectations to record the strongest reading since January 2014. Swiss KOF business confidence index strengthened to 104.7 for October from a revised 101.6 the previous month (revised from 101.3 earlier). Data exceeded consensus forecast of 101.8 for the month.

KOF Leading Indicator out of Switzerland is designed to predict the direction of the economy over the next 6 months. Today's upbeat data will boost confidence in the overall economic outlook, lessening demands for a weaker Swiss currency.

Improvement was seen in confidence in the manufacturing and hospitality sector while there was a net deterioration in sentiment within the financial sector. The boost to confidence in manufacturing was driven by a more positive assessment of the overall business climate and companies also reported that competitiveness has improved.