Brighter economic prediction

Switzerland's short-term economic outlook has brightened in July, according to the KOF barometer released yesterday.

The indicator, produced by the ETH Zurich research centre, rose 1.4 points to 103.5, staying above the 100-point growth threshold for a second month.

KOF says the positive signals are strongest in financial services, insurance, construction and industry, particularly in makers of electrical equipment, cars and machinery.

Some industrial firms are being lifted by demand for equipment to build AI data centres, though the employers' group Swissmem warns the recovery rests on a narrow base.

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