The KOF leading indicator likely to show Swiss economic recovery to continue

The KOF leading indicator rebounded for eight consecutive months and reached 1.68 in December – a 23-month high. The global economic upturn should push the KOF index even higher in early 2010 on rosier outlooks for Swiss exports. However, the index’s pace of recovery has decelerated in the last few months as uncertainties emerged on the sustainability of the current economic recovery. The KOF index is likely to increase to 1.82, a level consistent with a higher-than-expected long-term average growth of the Swiss economy in the coming six months.