KOF Economic Barometer: Muted momentum

In May, the KOF Economic Barometer drops by 1.6 points to a level of 100.3 (after a revised 101.9 in April). Although it has been above the average value of 100 in every month since the beginning of the year, it has not yet been able to rise substantially above this level. The indicator bundles for the manufacturing, financial and insurance services and foreign demand slowed down in May after having recorded positive developments in the previous month. The indicators for private consumption and the construction industry cushioned the decline with increases.

In the producing sector (manufacturing and construction), the sub-indicators for employment prospects, inventories, and production development in particular have become gloomier. In contrast, the indicators for orders for intermediate goods are developing positively.

Within the manufacturing sector, the weakening is evident almost everywhere. This is particularly the case for machinery and equipment manufacturing as well as in the industry of wood, glass, stone and earth and in the chemical and pharmaceutical industries. Food and beverage manufacturers are countering the downward tendency.