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Wages are likely to rise only moderately in 2025. This was revealed by a KOF survey of around 9,000 firms’ forecasts for wages over the next twelve months. The survey shows that companies expect to see nominal wage growth of 1.6 per cent on average. They are anticipating zero growth in real wages.

The Global Barometers reverse the previous month’s decline and continue the tendency of relative stability observed in recent months. The Leading Barometer remains above the neutral level of 100 points despite having lost ground earlier this year. The Coincident Barometer, in turn, has remained stable in a narrow band around 94 points since the beginning of the year.

The KOF Business Situation Indicator for the Swiss private sector, which is calculated based on the KOF Business Tendency Surveys, rose slightly in July. However, the indicator had fallen even more sharply in the previous month. Nonetheless, firms are currently being hampered in part by adverse weather conditions. Companies are similarly confident about their business expectations for the next six months as they were in the previous month.

The KOF Employment Indicator for the third quarter of 2024 has recorded a slight quarter-on-quarter increase for the first time since mid-2022. The improved employment prospects in the manufacturing sector are particularly evident.