The Swiss Franc has strengthened against the Pound and made gains against the Euro after the KOF leading economic indicator increased or a fourth consecutive month in July, suggesting that that the pace of growth in the Swiss economy will quicken as Europe exits recession.
The Index which is calculated by the KOF think-tank forecasts the development of the Swiss economy for the upcoming six month period. The index rose to 1.23 in July, up from the downwardly revised level of 1.15 in June. The data came in above economist expectations of 1.21, and is the highest recorded since December 2012.
The KOF data is in line with the department of economics forecast that Switzerlands GDP will expand by 1.4% by the end of the year and will expand by 2.1% in 2014.
“The construction industry is still the main driver of Swiss economic growth, although the turbulence in the neighbouring Euro-zone has eased somewhat recently” said KOF.
The Swiss economy has outperformed the Euro-zone in recent months as gross domestic product shrank for a sixth straight quarter in the three months through to March, led by contracting economies in Spain, France, Italy and the Netherlands. It is now mired in its longest recession on record, dating back to 1995.
By contrast, the Swiss economy performed better than expected in the first quarter, with GDP growth quickening to 0.6% on robust consumer spending, particularly on health and housing. Second-quarter GDP data is due for release on September the third.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8120
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0789
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.7092
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1940
(Correct as of 14:20 pm GMT)
Comments are closed.