Source: KOF Swiss Economic Institute
Zurich, 08/05/2026, 9 AM
The KOF Business Situation Indicator for the Swiss private sector, which is calculated from the KOF Business Tendency Surveys, rose in July. It had previously fallen for two consecutive months. Business activity is now more buoyant than it was at the start of 2026. Companies’ business forecasts for the next six months are also brightening significantly. Overall, the survey results suggest that the Swiss economy is gaining momentum.
Business is improving in almost all of the sectors surveyed, reflecting a fairly broad-based recovery across the Swiss economy. This improvement is particularly pronounced in the wholesale trade, manufacturing, and financial and insurance services. It is less evident in construction, project engineering, other services and the retail trade. The hospitality sector stands out as an exception: the business situation here is worsening noticeably in both the food-service and accommodation sectors. The deterioration in business is particularly marked among accommodation providers in the major towns and cities.
More upbeat business forecasts point to an economic upturn
The business outlook is consistently positive across all of the sectors mentioned, with expectations for the next six months more optimistic than before. Business confidence for the next six months is rising again in the hospitality sector too, even though restaurants no longer expect to see a turnaround for the better in the current quarter. Overall, the results point to a broad-based recovery in the Swiss economy.
Price inflation not rising any further
On balance, firms are planning to raise their prices almost as frequently as in the previous month. This means that price inflation is currently slightly lower than it was in May and June of this year. This July, companies in the manufacturing sector intended to raise their prices more often than before. By contrast, plans to raise prices in the construction sector are now less pronounced and, in the retail trade and other services, slightly less pronounced than they were previously.
When asked for their assessment of general consumer price inflation over the next twelve months, firms show no overall change compared with the April survey: they continue to expect consumer price inflation of 1.2 per cent on average over this period.
The results of the KOF Business Tendency Surveys for July 2026 are based on responses from around 4,500 firms in the manufacturing, construction and key service sectors. This equates to a response rate of around 57 per cent.