Swiss recovery to slow slightly as KOF dips

Fri Aug 27, 2010 5:35am EDT

* KOF barometer dips to 2.18, forecast was 2.20

* KOF institute says economy continues to grow at good pace

ZURICH, Aug 27 (Reuters) - Switzerland's brisk economic recovery may slow slightly in the months ahead, a small dip in the leading KOF growth barometer showed on Friday, with stronger consumer spending set to balance softer export growth.

The widely watched KOF indicator ticked down to 2.18 in August from a downwardly revised 2.22 in July, the KOF Swiss Economic Institute said on Friday, coming broadly in line with analysts' forecast of 2.20 in a Reuters poll.ECONCH

"This indicates that the current upbeat pace of Swiss economic growth will continue throughout the next few months, but will not accelerate any further," the KOF said.

The sub-indicator for exports had turned negative but the consumption gauge continued to improve, the KOF said.

The Swiss economy has emerged less bruised from the global crisis than many European countries thanks to its resilient consumers and revised growth data on Thursday showed the rebound from recession was even stronger than thought. [ID:nLDE67P0KD]

But Swiss National Bank chairman Philipp Hildebrand has already warned in two recent interviews that risks for the Alpine economy had increased due to signs of a slowdown in the United States.[ID:nLDE67O1RL]

The central bank is widely expected to keep its target for the 3-month Swiss franc LIBOR at ultra-low levels at its Sept. 16 policy review.

(Reporting by Sven Egenter; editing by Patrick Graham)