KOF Economic Barometer: Outlook remains gloomy

The economic barometer stands at 90.8 points in June and is thus 0.6 points lower than in May (revised from 90.2 to 91.4 points). This is the third time in a row that the barometer has fallen. The downward movement in the Barometer is primarily caused by bundles of indicators that capture foreign demand. Here, the outlook continues to deteriorate. The indicators covering private consumption and the economic sector of other services also give a slightly negative signal. The indicators for manufacturing and construction, on the other hand, point slightly in a positive direction.

In the goods producing sector (manufacturing and construction), the picture is predominantly positive. The strongest positive drivers are indicators assessing the inventory, followed by indicators capturing the employment outlook. Indicators that measure the business situation and indicators that measure the situation regarding order backlog also point in a positive direction. In contrast, indicators that measure the outlook for production send a slightly negative signal.

In the manufacturing sector, indicators for the electrical industry send the strongest positive signal. Indicator bundles for the machinery and vehicle manufacturing sector as well as for the chemical and pharmaceutical industries also point in a positive direction. Indicators for the paper and printing industry send a negative signal.