Wednesday, the Zurich-based think tank KOF announced that its leading indicator for the Swiss economy dropped to a record low of minus 1.86 points in April from minus 1.65 in March, revised from minus 1.79 reported initially. Economists were looking for weaker reading of minus 1.9.

The KOF economic barometer, based on a design with three modules, set a new low for the fourth month in a row.

The institute said, During the next few months, the year-on-year growth rate of Swiss GDP can hence be expected to be clearly negative.

Further, the institute noted that the Core GDP module, which accounts for more than 90% of Swiss GDP, continues to point downwards. The Core GDP module excludes construction and banking. Meanwhile, the downward trends of the construction and the banking modules, however, have lost momentum.

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