Swiss KOF index declines to 102.2, misses expectations at 104.3

Switzerland's KOF leading indicator for November declined to 102.2 from a revised 103.9 in October (revised lower from 104.7). The index was lower than market expectations of a figure around 104.3 although it remained above the long-term average.

KOF leading indicator is designed to predict the direction of the economy over the following six months. It is a composite reading of 12 economic indicators related to banking confidence, production, new orders, consumer confidence and housing.

Details of the report showed there was a monthly deterioration in the hotel and catering industry, together with manufacturing. The financial sector on the flipside showed a slight monthly upturn and there was greater optimism surrounding the international outlook.

The KOF said that the latest data indicates that growth in the Swiss economy should remain close to its long-term average in the near future.