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Feeling better Businesses gaining confidence as demand rises

Construction is picking up after a slow start to the the year


A survey of Swiss businesses suggests that economic conditions are stabilising, with most companies predicting a slight recovery in demand as the economy regains its footing in the coming months.

The KOF Business Tendency survey conducted by the Federal Institute of Technology Zurich (ETHZ) found that top managers are less sceptical than they were at the beginning of the year.

In the industrial sector, the downward trend noted a few months ago has not worsened. Declines in orders have slowed down and businesses no longer consider stocks of finished goods to be excessive.

In construction, weak demand at the beginning of the year has also dissipated and companies are expecting an uptick in project contracts towards the middle of the year.

In the retail and finance sectors, respondents also gave a positive assessment of the business outlook; however expectations remain gloomy in the hotel sector where occupancy rates are expected to continue declining.

Employment trends also returned to the black in the first three months of the year, following two quarters of decline. KOF’s Employment Indicator found employment rates in Switzerland should remain steady or increase slightly over the three months to June 30.


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