KOF Economic Barometer slightly below the long-term average

In March, the KOF Economic Barometer fell by 5.6 points, from 105.3 (revised from 105.0) to 99.7. The normalisation since the last peak in May 2021 is thus continuing, most recently probably driven to a large extent by the anticipated economic effects of the military violence in Ukraine. The decline is primarily due to indicators from the manufacturing sector, followed by those for private consumption. The other indicators included in the barometer show hardly any changes.

In the producing industry (manufacturing and construction), the order backlog in particular is assessed as less positive, followed by the business situation, production, and employment.

In manufacturing, all sectors shown in the Barometer signal a deterioration compared to the previous month. This deterioration in sentiment is most pronounced in the textile industry, followed by the electrical and chemical industries as well as mechanical engineering and the metal industry.