KOF Economic Barometer: Alleviation in sight

The KOF Economic Barometer shows an extraordinarily strong increase of 25.1 points in July. From 60.6 (revised from 59.4) points in June, the barometer rose to 85.7 points. Despite this positive development, the value remains clearly below its long-term average. Responsible for the current easing are primarily the indicator groups for the manufacturing sector, the other services sector and foreign demand. To a lesser extent, the indicators for private consumption, construction activity and the financial and insurance services sector are contributing to the improvement. Only the accommodation and food service activities cannot follow the broad positive development.

In the manufacturing sector, the outlook is brightening in all segments. The improvement is particularly pronounced in the metal industry, the electrical industry, the wood, glass, stone and earths industry, mechanical engineering and the chemical, pharmaceutical and plastics industry. With the exception of the wood industry, the development in these industries is likely to remain below average in a longer-term comparison.

In the goods producing sector (manufacturing and construction), the indicators for the business situation and for the further development of new orders and production activity are more favourable than before. However, also other aspects, such as employment or export prospects and the competitive position, are no longer as negative as in recent months.