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Swiss economic growth slows on weak euro zone sales -KOF
November 30, 2012 / 9:06 AM / 5 years ago

Swiss economic growth slows on weak euro zone sales -KOF

* Leading indicator falls to 1.50 in November

* Weak euro zone sales dampening industry growth

* Swiss consumer remains resilient

ZURICH, Nov 30 (Reuters) - The Swiss economy’s momentum slowed further in November as exporters feel the bite of tightened spending in euro zone economies, a leading indicator showed on Friday.

The KOF barometer fell to 1.50 points in November from a revised 1.64 in October, the KOF Swiss Economic Institute said, its second consecutive decline and a bigger fall than forecast.

“It is weaker than expected, the worst since July and perhaps understandable given the euro zone, Switzerland’s main trading partner, has fallen into recession,” said Informa Global Markets analyst Tony Nyman.

“Expect no policy impact - economic concerns have been well flagged by the SNB already, although (this data) comes hot on the heels of a stellar Q3 GDP number.”

Analysts polled by Reuters had expected a reading of 1.60, with six analysts providing estimates from 1.50 to 1.75.

Economists said the decline was of little concern, noting that the KOF was coming back into line with other indicators after painting too rosy a picture of Switzerland’s economic outlook in the last several readings.

The KOF institute noted, however, that Swiss consumers are showing continuing resilience even as exports weaken.

“The barometer’s individual indicators suggest that less favourable foreign sales opportunities are putting a damper on the development of Swiss industry,” the KOF institute said.

“Consumption continues to drive the Swiss economy.” (Reporting by Martin de Sa‘Pinto; Editing by Catherine Evans)

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