November

In November, the KOF Economic Barometer fell to its lowest level since 2015. The downward movement, which has been observed since the beginning of the year, continues. The barometer is still well below its long-term average. The outlook for the Swiss economy remains subdued.

Swiss healthcare spending in 2019 is set to rise by 3.6%, which is slightly higher than in the two previous years. The main reasons for this increase continue to be the modest rise in wages and the growing elderly proportion of the population. Healthcare spending in 2020 and 2021 is likely to increase by 3.3% and 3.6% respectively. These are among the findings of the biannual KOF Healthcare Expenditure Forecast, which has been compiled with the help of research funding provided by comparis.ch.

The Business Situation Indicator recorded another decline in October, having previously remained practically unchanged over the summer months (see G 1). The business situation is currently significantly less positive than it was last autumn, and has been worsening for several months, in particular in the manufacturing sector. The global economic slowdown is increasingly having knock-on effects on Switzerland.  

The short-term prospects for the Swiss labour market have deteriorated, with the KOF Employment Indicator falling from 4.6 points to 2.3 points. This decline is being driven by industry, whose employment expectations are almost as low as in the aftermath of the Swiss franc shock of 2015. By contrast, most construction firms and banks are planning to increase their staffing levels.