Swiss KOF Leading Indicator misses expectations in August, slips to an eight-month low

Survey data from the Swiss Economic Institute KOF showed on Tuesday that the measure reflecting Switzerland's economic activity declined for the first time in three months. The KOF Economic Barometer declined to 99.8 from 103.5 in July (which was revised from 102.7), missing expectations for a score of 102.

The reading was at its lowest level in eight months. The latest reading was the lowest since December 2015, when it was 96.7. The score also fell below its long-term average for the first time since December.

Zurich-based think tank attributed the monthly fall in the index to the deteriorating outlook in the Swiss manufacturing, banking and tourism sectors as well as international business situation.

The outlook for the Swiss economy is less upbeat than one month ago, returning to its long-term average path, the Zurich-based KOF said. However, these negative tendencies were slightly offset by the positive tendencies in domestic consumption and construction sectors, KOF added.