Swiss KOF Economic Barometer rises to 106.7 on manufacturing strength

Switzerland’s KOF Economic Barometer rose to 106.7 in August, exceeding the consensus forecast of 103.0. This increase follows a previous revised figure of 104.2 and places the index well above its medium-term average of 100, signaling positive economic momentum.

The growth was primarily driven by improvements in manufacturing, other services, and foreign demand. Within the industrial sector, indicators for production activity, order backlogs, employment prospects, and intermediate-goods inventories showed strength. Specifically, the metal and textile industries strengthened, although the paper and printing sectors experienced a decline.

Despite these gains, private consumption remains a point of weakness and is described as being “slightly under pressure.” In the currency markets, the Swiss Franc (CHF) continues to benefit from a strong labor market, with employment levels rising to 5.698 million in the second quarter. Analysts are monitoring the CHF/THB exchange rate, noting a bullish technical bias following recent resistance breakouts.