May

The KOF Economic Barometer fell again in May. It therefore dives further below its long-term average. The Swiss economy is developing rather sluggishly.

The unexpectedly sluggish economy and the slightly higher exchange rate dampened demand in the tourism industry last winter. However, the Alpine regions benefited from the plentiful snow and the favourable weather conditions, which is why they saw stronger growth in overnight stays than the towns and cities did. 

In April, the business situation slowed down again. The Business Situation Indicator declined for the fifth consecutive month. With the exception of construction and project engineering sectors, all other sectors have been struggling to sustain their business situation since the beginning of 2019. However, the companies’ expectations for the next six months have not deteriorated any further and are moderately confident. Nevertheless, Swiss economy is facing a difficult environment.

All in all, HR planning at Swiss companies has changed very little in the last few months. However, according to the latest KOF Employment Indicator, the companies’ planning followed highly diverging trends: While the construction industry, insurance companies and the other service providers are planning to increase staff numbers, the outlook deteriorated for banks and the hotel and catering sector.