KOF Economic Barometer: Second drop in a row

The KOF Economic Barometer drops by 1.8 points in May to 94.4 points from 96.2 in April (this figure is unchanged compared to the previous publication). The majority of sets of indicators are tending downwards. The indicators for banking and insurance, consumption and foreign demand have developed negatively. The prospects for accommodation and food service activities and the other service providers have become gloomier. In the manufacturing sector, the outlook hardly changed compared to the previous month. For the construction sector, the outlook has improved.

In the goods producing sectors (manufacturing and construction), the business situation is under pressure. The employment outlook also deteriorates slightly. Production could, however, develop positively in the coming months, so that the data in the goods producing sector do not show a completely uniform development.

Within the manufacturing sector, the indicators also point in different directions depending on the industry. The indicators for wood, glass, stone and earth as well as for the electrical industry show a positive tendency. On the other hand, the changes in the indicators for food and beverages producers, the metal industry, machinery and vehicles producers as well as for the chemicals, pharmaceuticals and plastics industry are negative.