Oct. 28 (Bloomberg) -- Switzerland’s economic indicator fell for a sixth month in October, adding to signs of a deepening slowdown.
The monthly gauge that aims to predict the economy’s direction about six months ahead dropped to 0.8 from 1.21 in September, the KOF Swiss Economic Institute in Zurich said in an e-mailed statement today. That’s the lowest since Sept. 2009. Economists forecast a drop to 1.0, the median of 13 estimates in a Bloomberg News survey shows.
Switzerland’s economy is cooling as the franc’s 12 percent gain versus the euro in the past 12 months has eroded foreign sales just as consumers became more pessimistic. The government in September cut its growth forecasts for both this year and next and the BAK Basel economic research institute this week said the economy may not grow through the first quarter of 2012.
The indicator’s decline “suggests Swiss economic growth is likely to slow markedly,” KOF said in its statement. Still, “a recession is not likely to develop within the next few months.”
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