KOF Economic Barometer: Recovery continues

The KOF Economic Barometer stands at 110.7 points in October, 0.3 points lower than in September (revised from 110.6 to 111.0 points). This month, the development of the barometer is driven by opposing forces in the movements of the underlying indicator bundles. Indicator bundles of the food and beverage industry have improved clearly and are contrasted by declines in indicator bundles of manufacturing, the economic sector other services, foreign demand and the financial and insurance services, resulting in an almost unchanged overall movement.

In the goods producing sector (manufacturing and construction) the indicators for almost all sub-sectors of business activity are weakening. In particular, the assessment of the general business situation, the employment outlook and the assessment of order backlog is gloomier. By contrast, the assessment of the situation for intermediate goods and inventories remains virtually unchanged.

Even though above-average values continue to be achieved, within the manufacturing sector, almost all the industries represented in the barometer are weakening. This is particularly pronounced in the mechanical engineering and vehicle manufacturing sector, followed by the chemicals, pharmaceuticals and plastics sector and the textile industry. By contrast, indicators from the paper and printing sector point to a slight improvement.