KOF Business Tendency Surveys, January 2017: Companies Report Subdued Situation at the Beginning of the Year
08.02.2017 | Press release
The KOF Business Situation Indicator for the Swiss private economy declined slightly at the start of 2017, resulting in the third monthly slowdown of the business situation in a row. Nevertheless, companies considered their situation to be more favourable in January 2017 than at the beginning of 2016. The latest slowdown shows, however, that the Swiss economy is still on difficult terrain.
Development by economic sector
The slowdown of the business situation is primarily due to the assessments provided by manufacturing companies and wholesalers. In the manufacturing industry, the indicator dropped for the third time in a row, albeit just slightly like in the previous two months. Nevertheless, this trend shows that tension ap-pears to be on the rise again among manufacturing companies. In the retail trade, the situation is almost unchanged; in this sector, the assessment is stagnating at a low level. In contrast, the situation has im-proved in the construction and project engineering sector, among banks and insurances, in the hotel and catering industry and among the other service providers.
Business situation by region
From a regional perspective, only Ticino and Central Switzerland show a marked decline in the macroe-conomic Business Situation Indicator. In the other regions – North-West Switzerland, Espace Mittelland, Eastern Switzerland as well as the Zurich and Lake Geneva regions – the situation improved slightly. Eastern Switzerland stands out in year on year comparison, with companies reporting a significant im-provement of their situation at the beginning of this year compared to the start of 2016.
The results of the current KOF Business Tendency Surveys of January 2017 are based on the answers of over 4,500 companies in industry, construction and the main service sectors. The response rate was approximately 56 per cent.