KOF Economic Barometer: Economic outlook dampened

The barometer stands at 96.8 points in May, 6.2 points lower than in April (revised from 101.7 to 103 points). The downward movement of the barometer is driven by indicator bundles of almost all branches of the economy. Only indicators for the financial and insurance services sector and for foreign demand are at a constant level.

In the goods producing sector (manufacturing and construction), indicator bundles for assessing the competitive position make the most negative contribution. Similarly, the bundles of indicators assessing obstacles to production activity point in a negative direction. Indicators assessing order backlogs and exports send a virtually unchanged signal.

In the manufacturing sector, indicators for the paper and printing industry and for the textile industry are making the strongest negative contribution. By contrast, a slight positive signal is sent by the metal industry. Indicators for the food and beverages producers’ sector and for the electrical engineering industry are at an almost constant level compared to the previous month.