KOF Economic Barometer,
Definition of KOF Economic Barometer:
The KOF Economic Barometer is a composite indicator that provides a reliable reading on the direction of GDP growth for the Swiss economy compared with the same quarter a year earlier. The KOF Economic Barometer is based on a multi-sectoral design with three modules: core GDP, construction, and banking. The barometer has a complex structure because it bundles over 200 individual indicators in several steps. It is published monthly by the KOF Swiss Economic Institute.
The concept of the barometer is to indicate the status of the Swiss business cycle, as captured by a reference series that reflects the Swiss GDP monthly growth rate, as early as possible. Movements in the KOF Economic Barometer on average lead movements in the reference series by one month. The KOF Economic Barometer demonstrates leading indicator properties with respect to both the synthetic reference time series and with actual quarterly growth rates of Swiss GDP.
A composite indicator published monthly that estimates the GDP growth rate of the Swiss economy. It uses 25 multisectoral bundled individual indicators that are combined as part of the Core GDP model, excluding the credit and construction industries. Three parallel measurement models are then combined and summarized through the Core GDP module indicator. These models are called Swiss Industry, Swiss Consumption and Export Destination EU. A weighted average is then calculated to produce the KOF Economic Barometer.
How to use KOF Economic Barometer in a sentence?
- Investors and financial traders use the KO Economic Barometer to inform decisions regarding Swiss investments.
- The current version of the Barometer is constructed of an aggregate of over 200 economic variables related to the Swiss economy.
- The KOF Economic Barometer is a composite leading indicator of Swiss GDP growth.
Meaning of KOF Economic Barometer & KOF Economic Barometer Definition