May

In May, the KOF Economic Barometer falls significantly and now stands at 90.2 points. This is the second time in a row that the barometer has fallen sharply. The outlook for the Swiss economy for the middle of 2023 is thus deteriorating further and remains at a below-average level.

The Global Barometers rise only slightly in May, reflecting continued weakness in global economic activity in most countries and moderate optimism, partly related to the gradual recovery of the Chinese economy.

The KOF Business Situation Indicator for the Swiss economy, which is calculated from the KOF Business Tendency Surveys, fell in April. It had hardly moved in the previous month. Performance varied from sector to sector. Although the Swiss economy is faltering slightly, there are also positive signals. Supply chain problems, for example, have largely dissipated and the upward pressure on prices is decreasing.

The KOF MPC figure for 4 May 2023 is 0.19. At today’s meeting, the ECB’s Governing Council communicated that the inflation outlook continues to be too high for too long.

Starting from a high level, the KOF Employment Indicator is decreasing slightly. However, above-average employment growth on the Swiss labour market can still be expected in the current quarter.