ZURICH: Switzerland's KOF economic barometer unexpectedly dipped to 96.6 points in December, signalling that the strong Swiss franc will to continue to weigh on activity well into 2016.
Analysts had expected the economic institute's leading indicator, which points to the likely performance of the economy in about six months' time, to increase to 99.1 points, just short of its long-term average, from a revised 97.3 points last month.
But KOF's analysis indicated that manufacturing will remain under pressure and private consumption will show signs of strain nearly a year and a half after the Swiss National Bank removed its 1.20-per-euro cap on the franc.
"The fall of the KOF economic barometer in December was mainly driven by a deterioration of sentiment related to Swiss manufacturing activity, indicating that the lasting effects of the franc shock are not over yet," the think tank said.
"Further negative tendencies are observed in indicators related to construction activity ... as well as ...private consumption."
That offset improved outlooks for foreign demand and Switzerland's financial industry, after the central bank kept record-low interest rates steady at its policy meeting this month.
The euro was trading at 1.081 francs at 0940 GMT. Since October, it has held largely steady between 1.08 and 1.09.
Comments
Comments are closed.