THE TAKEAWAY: KOF Swiss economic indicator beats analysts’ expectations -> Third straight rise seen as positive economic sign -> Franc takes a small fall following release
The KOF Swiss economic indicator came in at 0.40 for the month of April, beating analysts’ estimates of .20. It is the third month in a row that the indicator rose, beating last month’s revised result of .09.
The KOF economic indicator is considered a forecast for the Swiss GDP growth about six months into the future, and the result is the percent difference between the optimistic and pessimistic responses to the KOF surveys. Industry seemed to be the main driver behind the higher forecasted GDP, as trade and consumption also pointed higher. Construction and banking modules were mixed.
The rising 2012 results could be seen as an indicator of economic recovery in Switzerland. The positive data follows a drop in the Swiss jobless rate and an expanded manufacturing output.
The Swiss franc took a small unexpected fall following the release of the indicator. USD/CHF continued a daily uptrend past 0.91300, but still below Tuesday’s high of .91412. EUR/CHF barely moved after the release, as the cross remains fairly unchanged for the month of April.