KOF Economic Barometer

AAA

DEFINITION of 'KOF Economic Barometer'

A composite indicator that provides a reliable reading on the direction of GDP growth for the Swiss economy compared with the year-earlier quarter. 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, as it bundles as many as 20 individual indicators in several steps. It is published monthly by the KOF Swiss Economic Institute.

INVESTOPEDIA EXPLAINS 'KOF Economic Barometer'

Although the KOF Institute cautions that no conclusions can be drawn about the level of the GDP growth rate on the basis of the KOF Economic Barometer, the barometer is closely followed by participants in the financial markets. Barometer readings that are higher than expected may have the effect of strengthening the Swiss franc, while lower than anticipated readings may weaken it.

RELATED TERMS
  1. Swiss National Bank

    The Swiss National Bank is the bank that is responsible for setting ...
  2. CHF (Swiss Franc)

    The currency abbreviation for the Swiss franc (CHF), the currency ...
  3. Barometer

    A compilation of market and economic data that represents a general ...
  4. Economic Indicator

    A piece of economic data, usually of macroeconomic scale, that ...
  5. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  6. Global Recession

    An extended period of economic decline around the world. The ...
RELATED FAQS
  1. What are the Gnomes of Zurich?

    The "Gnomes of Zurich" is a euphemism for Swiss bankers. The name is meant as an insult because gnomes, most often found ... Read Full Answer >>
Related Articles
  1. Options & Futures

    Exploring Non-Dollar Currencies For Forex Trading

    Learn how investments in foreign currencies can diversify your portfolio.
  2. Forex Education

    Making Sense Of The EUR/CHF Relationship

    The strong correlation between EUR and CHF currency pairs is undeniable. Find out what it means for forex traders.
  3. Forex Education

    Make The Currency Cross Your Boss

    Tap into a world of possibilities by going beyond the simple pro- or anti-dollar trade.
  4. Chart Advisor

    Is Now the Time to Invest in North America?

    Bullish chart patterns across the North American markets suggest that now might actually be a wise time to allocate closer to home.
  5. Investing

    How To Trade Foreign Stocks

    We weigh the major ways to trade foreign stocks for investors.
  6. Economics

    Asian LNG Prices: Not Likely To Rise Anytime Soon

    Asian LNG prices could stay low for an extended period of time, due to low oil prices, less demand and new LNG-producing projects on various continents.
  7. Investing Basics

    Here's How To Tap International Markets

    Access to foreign markets has grown a lot in recent years, allowing US market players to trade these bourses in real-time.
  8. Stock Analysis

    3 Things I Learned From lululemon Athletica's 10-K

    Lululemon athletica has emerged not only as one of the nation's fastest-growing retailers, but also as one of the market's favorite growth stocks.
  9. Stock Analysis

    Energy Transfer Partners' Mexican Ambitions

    There has been a lot of talk over the past year or so about America's enticing ability to export natural gas to global markets
  10. Stock Analysis

    What’s The Smartest Way To Play Tobacco Stocks?

    While the United States economy continues to grow, the U.S. tobacco industry keeps shrinking.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center