KOF Business Tendency Surveys: Swiss Companies Facing Headwinds
The KOF Business Situation Indicator has started the new year in negative territory, falling for the second consecutive month. Firms’ expectations about their business going forward are less optimistic than they were. Nonetheless, they are predominantly confident about their future operating performance. Although the Swiss economy therefore remains in good shape at the beginning of 2019, companies are facing increasingly strong headwinds
Business situation by sector
Broken down by sector, the fall in the Business Situation Indicator can be attributed particularly to the poor performance of wholesalers and other service providers. The Indicator has also declined slightly in manufacturing, accommodation and food services, and the retail sector. Bucking this downward trend are construction, project engineering, and financial services and insurance. Business in these sectors has either hardly changed or has marginally improved.
Business situation by region
There has been a widespread deterioration in business across the regions. The Business Situation Indicator is falling in Ticino, Northwestern Switzerland, the Lake Geneva region, Eastern Switzerland and – even more than in these areas – in the Zurich region and Central Switzerland. Only in Espace Mittelland is the business situation almost as strong as in the previous month.