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The KOF Economic Barometer falls again in May after a rise in the previous month. This year it has only managed to stay very slightly above its medium-term average. Although the Swiss economy is robust, it is not showing much vigour beyond that.

KOF and the Neue Zürcher Zeitung (NZZ) newspaper surveyed economists at Swiss universities about the upcoming vote on the Swiss healthcare system on 9 June this year and received 113 responses. Two-thirds of survey respondents rejected the premium-reduction initiative. Although economists were less unanimous on the cost-capping initiative, a small majority rejected this as well.

The Leading Global Barometer rises for the second month in a row, but only partially compensating for the losses in February and March. The Coincident Barometer increases marginally this month, remaining within the narrow range of 93 to 94 points observed since February.

The KOF Business Situation Indicator for the Swiss private sector, which is calculated from KOF’s Business Tendency Surveys, improved slightly in April. The situation in the manufacturing sector eased, while it deteriorated slightly in the construction industry.

The KOF Employment Indicator has recorded a further decline in the second quarter of 2024 compared with last quarter. The deterioration in employment prospects is particularly evident in the manufacturing and banking sectors. Overall, the indicator is approaching its long-term average.