| Source: KOF Economic Institute
The KOF Business Situation Indicator for the Swiss private sector, which is calculated from KOF’s Business Tendency Surveys, improved slightly in April. The situation in the manufacturing sector eased, while it deteriorated slightly in the construction industry. The persistently tough business situation – particularly in manufacturing industry – eased in April. Business also improved in financial and insurance services and in the retail trade. This was already the third slight increase in the Business Situation Indicator for the retail trade in a row. Firms engaged in other services are also reporting a gradual improvement. Private consumption could boost the economy In contrast, business in the project engineering and construction sectors – both of which are associated with building activity – deteriorated slightly, while in the hospitality and wholesale sectors it deteriorated significantly. The improvement in the retail and manufacturing sectors – particularly in consumer goods production – as well as the weaker but still fairly encouraging business situation in the hospitality industry together indicate that private consumption could provide stimulus to the Swiss economy. Companies’ inflation concerns easing Firms expect to see moderate levels of general consumer price inflation in Switzerland going forward. As far as tr |
