KOF Economic Barometer: Outlook remains favourable

The KOF Economic Barometer rises by 0.6 points to 107.8 in January from 107.2 in the previous month (revised from 107.0 in the December release). The outlook continues to be above average and significantly better than in January 2021. However, the current level of the economic barometer does not reach the high values from spring and summer of last year.

The various subgroups of the barometer are developing unevenly. The outlook has improved for consumer spending and for financial and insurance service providers. The outlook also tends to brighten for the accommodation and food service activities, although further development in this sector in particular is likely to be subject to the intensity and duration of the omicron wave. The bundles of indicators for the service sectors, manufacturing and foreign demand suggest a less positive development than in the previous month.

In the goods production sector (manufacturing and construction), indicators for almost all sub-aspects of business activity are weakening, especially for profit development, production activity and capacity utilisation. This broad downward movement is countered by the indicators for the competitive situation and employment development.

Within manufacturing, the indicators for the food, beverages and tobacco sector, the wood, glass, stone and earth sector and for manufactures of machinery and equipment point to a less dynamic development. The outlook for the chemicals, pharmaceuticals and plastics sector has hardly changed.