The KOF leading indicator of Switzerland plunged more than expected to -1.41 in February, which is the lowest level since the series began in 1991, and reinforces the Swiss National Bank’s dour outlook for growth. Meanwhile, the December reading was revised down to -0.93 from an initial reading of -0.87 in the previous month. The data continues to highlight a weakening outlook for the Swiss economy, and the condition are likely to deteriorate throughout the year as the Swiss government forecasts the annual rate of growth to contract 0.9% in 2009. As the Euro-Zone, Switzerland’s biggest trading partner, faces its worst recession since World War II, the outlook for the export-driven economy bleak as global trade conditions remain far from favorable.
