Swiss KOF economic index remains unchanged in December, slightly above long-term average

The Swiss KOF economic barometer, measuring the dimensions of globalization in terms of economic, social and political indicators remained unchanged during the month of December, although slightly above the long-term average. However, it defied expectations of a further improvement this month.

The Swiss KOF Economic Barometer was unchanged at 102.2 for December and below consensus expectations of a further improvement to 103.00 for the month. The index remains slightly above the long-term average and continues to suggest that the economy will grow close to its long-term average over the next few months.

Manufacturing sector remained the centre of optimism in the economy, offset by a dip in the construction sector. However, consumers remained cautious surrounding the general business situation. There were no significant changes in the in the hotel and financial sectors with confidence surrounding the international outlook also little changed from November.

Meanwhile, there will, be continued pressure to reduce costs and the National Bank will continue to resist currency gains in the short term.