KOF Economic Barometer: Economic outlook deteriorates

In June, the KOF Economic Barometer decreases by 2.5 points to a level of 96.1 (after revised 98.6 in the previous month). The negative developments are reflected in the majority of the indicator bundles included in the KOF Economic Barometer. In particular, the indicator bundle for manufacturing is considerably under pressure. The negative perspectives are slightly cushioned by the indicator bundle for foreign demand which shows an improved outlook this month.

Within the producing industry (manufacturing and construction), the sub-indicators for different aspects of business activity exhibit predominantly negative developments. The sub-indicators for the general business situation show a particularly strong downward tendency. Also weakened are the sub-indicators for production activity, stockpiling of intermediate goods, order backlogs, and stocks of finished products. Slightly positive, but almost unchanged, are the perspectives for the exports sub-indicators.

The predominantly negative developments are present along the majority of sub-indicators within manufacturing. Particularly weakened are the sub-indicators for the wood, glass, stone and earth segment, the chemical and pharmaceutical industry, as well as the metal industry. The sub-indicators for the textile industry remain nearly unchanged.