KOF Economic Barometer: Headwind recedes

The KOF Economic Barometer has risen by 3.3 points in July to 97.1 from 93.8 in June (revised from 93.6). Slightly more favourable signals than before are coming from manufacturing, other services, accommodation and food service activities as well as financial and insurance services. Construction is contributing slightly to the positive development. Consumer prospects are practically unchanged. On the other hand, the indicators for demand from abroad have a dampening effect.

In the goods producing sectors (manufacturing and construction), the barometer is strengthened above all by indicators on the competitive situation and the number of employees. On the other hand, the indicators for the purchase of intermediate products are directed downwards. On the whole, the prospects for the manufacturing industry have brightened visibly.

Within manufacturing, the outlook is more favourable, especially for the electrical industry and food and beverages. It is also brightening up somewhat for machinery and vehicles producers, the metal industry and the textile and clothing industry. The outlook for the wood, glass, stone industry as well as paper, printing and the producers of other goods has worsened.