KOF sees signs of economic recovery

A number of Swiss economic sectors have started showing signs of recovery from the recession, according to a survey by the Swiss Economic Institute (KOF).

There has been growth in wholesale trade, banking and communications while the construction and insurance industries have stagnated, said the report issued on Friday by KOF, which is part of the Federal Institute of Technology in Zurich.

For manufacturers a one-year slowdown in production has ended, and expectations are now at their highest point in three years. Retailers are expecting sales to rise moderately over the coming three months.

KOF said banks were emerging from the recession and for the first time in over a year judged their situation to be satisfactory. But they were not yet confident about a sustained recovery.

The hotel and catering sector was continuing to suffer from the weak state of the international economy, with sales down four per cent in the last quarter of 2009, and was less certain about the months ahead.

The KOF survey suggested that a far-reaching improvement in the labour market over the coming months was unlikely.

swissinfo.ch and agencies