ZURICH: Prospects for the Swiss economy remain healthy, a leading indicator showed on Wednesday, as the central bank's cap on the safe-haven franc underpinned the country's export sector.
The index compiled by the KOF research institute, a gauge of the economy's expected performance in about six months' time, rose to 1.57 points in August from a revised 1.41 points in July, beating an average analyst forecast for 1.50 points.
That marked its seventh consecutive monthly rise."This confirms the positive outlook for the Swiss economy," the KOF said in a statement.
To shield the economy from recession and deflation, the Swiss National Bank set a cap of 1.20 per euro on the franc last September, seeking to turn back a wave of capital flooding into the currency from the euro zone's troubles.
Switzerland is highly dependent on trade with the euro zone, and companies that export to the bloc had seen business suffer from the franc's gains before the cap was established.
But halting the appreciation at 1.20 per euro is widely credited with helping the Swiss economy escape contraction.
The SNB, which forecasts growth of some 1.5 per cent this year, said at its most recent policy review in June that it still expects a significant economic slowdown for the rest of the year.
indiatimes.com
The index compiled by the KOF research institute, a gauge of the economy's expected performance in about six months' time, rose to 1.57 points in August from a revised 1.41 points in July, beating an average analyst forecast for 1.50 points.
That marked its seventh consecutive monthly rise."This confirms the positive outlook for the Swiss economy," the KOF said in a statement.
To shield the economy from recession and deflation, the Swiss National Bank set a cap of 1.20 per euro on the franc last September, seeking to turn back a wave of capital flooding into the currency from the euro zone's troubles.
Switzerland is highly dependent on trade with the euro zone, and companies that export to the bloc had seen business suffer from the franc's gains before the cap was established.
But halting the appreciation at 1.20 per euro is widely credited with helping the Swiss economy escape contraction.
The SNB, which forecasts growth of some 1.5 per cent this year, said at its most recent policy review in June that it still expects a significant economic slowdown for the rest of the year.
indiatimes.com
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