KOF Economic Barometer: Downward Tendency Continues

The KOF Economic Barometer falls by 1.8 points in November, from 94.8 (revised from 94.7) to 93.0. Several bundles of indicators are equally responsible for the decline. However, negative signals from hotel and catering activities and from the banking and insurance sector stand out slightly. Indicators regarding foreign demand and other services are also declining. On the other hand, indicators for the manufacturing sector remain almost unchanged.

Within the manufacturing sector, the prospects of the metal industry are brightening. However, the sub-indicators for the wood and paper and printing industries show a negative development. The outlook for the electrical industry, the mechanical engineering industry, the manufacturers of food and beverages and the chemical industry, on the other hand, remain virtually unchanged compared to the previous month.

The goods producing sector (manufacturing industry and construction) shows a mixed picture, with the negative outlook slightly overweighing it. This is mainly due to developments in production capacities. However, prospects regarding exports and the business situation are less negative compared to the previous month. The employment outlook and indicators concerning the purchase of intermediate products remain broadly unchanged.