2010.08.2706:41:00UTC+00Swiss KoF Economic Barometer Drops In August

Switzerland's KOF economic Institute said Friday that its economic barometer reached 2.18 in August from July's revised 2.22. Economists had forecast a reading of 2.2.

The think tank said the decline in the index means the end of the rise seen in July has been confirmed. Moreover, it suggests that the current upbeat pace of Swiss economic growth will continue throughout the next few months, but will not accelerate any further, it added.

The KOF economic barometer is based on a multi-sectoral design with three modules. While the core GDP module, which excludes construction and banking sectors, is signaling sustained high growth rates, it has continued to weaken slightly. The core GDP module accounts for more than 90% of Swiss GDP and hence dominates the barometer.

The construction module has a moderately positive value, and is again pointing upwards. The banking module is in positive territory, and is moving sideways, the think tank said.

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