August

In August, the KOF Economic Barometer fell from its all-time high in May for the third time in a row and now stands at 113.5 points. However, this is still significantly higher than the long-term average. Accordingly, in the coming months the economic recovery from the consequences of the pandemic is expected to continue.

The fall in the Global Economic Barometers in August indicates a slowdown in world economic growth rates for the second half of 2021. Despite their decline, the indicators remain at a high level consistent with the continuation of the current recovery phase in global economic activity.

The KOF Business Situation Indicator rose sharply in July. For the first time, Swiss companies’ business activity is now better than it was at the start of 2020. Survey respondents are confident about developments going forward and see fewer uncertainties than they did at the beginning of the year. This optimistic assessment by firms is consistent with KOF’s latest calculations.

The KOF Employment Indicator continues to rise in the third quarter of 2021 and is above the long-term average for the first time since the beginning of the COVID-19 crisis. The upswing is broadly supported: almost all sectors are recording positive employment indicators. Even in the hospitality industry, employment expectations for the next three months are now in positive territory.