KOF Economic Barometer – The Downward Slide Continues

In November 2011 the KOF Economic Barometer continues to slide – down to a new low of 0.35. This suggests that Swiss economic growth is further losing momentum.

Following the sharp declines recorded in the previous three months, the KOF Barometer continued its downward trend in November. In comparison to October (0.75, revised from 0.80),  the Barometer fell 0.40 points, and now stands at 0.35 points. The current KOF Economic Barometer signals that year-on-year growth of Swiss Gross Domestic Product (GDP) is likely to be minimal in the near future.

The Economic Barometer is based on a multi-sectoral design with three modules. They are contributing towards the overall development of the Barometer as follows: the “Core GDP” module (GDP excluding construction and banking) shows a clear negative trend. The “Construction” module remains in positive territory, though exhibiting a downward momentum. The “Banking” module stays in positive territory, too, but is moving sidewards.

The “Core GDP” module, which comprises for more than 90% of Swiss GDP, dominates the KOF Economic Barometer. The underlying measurement models are “Swiss Industry”, “Swiss Consumption” and “Swiss Exports Destination EU”. They all clearly display a negative development.