Switzerland’s KOF economic barometer’s index of future conditions fell to its lowest level in two years in July, data showed, pointing to sluggish growth in one of Europe’s traditionally strongest economies.
The barometer, compiled by the KOF Institute at the Federal Institute of Technology in Zurich, fell 5.1 points to 90.1 in July, the third straight month the index has been below 100, and the lowest level since July 2020.
Any figure below 100 points indicates below-average economic activity in the analysis, which indicates the health of the Swiss economy in about six months.
“After a modest decline in the previous month, the decline is now intensifying again. The Swiss economy is likely to grow sluggishly in the autumn,” KOF said.
KOF economist Klaus Abberger said there was a broad slowdown underway, with manufacturing and services reporting lower activity.
“We have just come out of the recovery from the coronavirus pandemic and now we see a weaker international environment, particularly in Europe, which is affected by the war in Ukraine and higher energy costs,” the economist told Reuters.
The Swiss government last month downgraded estimates for economic growth, warning that risks arising from the war in Ukraine and from energy and food inflation had increased.
Source: Capital
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