Central Swiss economy is perceptibly brightening
Lucerne – The business situation of the Central Swiss economy improved significantly between September and October. As the latest quarterly analysis from the IHZ shows, recovery is above all being driven by a robust service sector and positive developments in construction, finance and project planning.
After a weak third quarter, many companies are seeing business improve again. This is shown by the latest regional quarterly analysis from the Central Swiss Chamber of Industry and Commerce (IHZ) based on the KOF Business Situation Indicator for Q4.
According to the analysis, the expectations of Central Swiss companies have reached their highest level in a year. They therefore exceeded the level of July 2025, i.e. before the US tariff increases on Swiss imports were announced. A clear majority of companies expect the business situation to continue to improve.
Industry sentiment also improved significantly in October. Assessments of the business situation had been very pessimistic in August and September, in particular. Positive impetus is coming from the intermediate goods industry, whereas the situation in the consumer goods industry remains strained. The key capital goods industry for Central Switzerland, which especially includes mechanical engineering, similarly considers the business situation to still be gloomy. However, everyone is more positive now about the next six months than they have been in the recent past.
Despite a record-high occupancy rate and earnings situation in the hotel industry over the summer season, the business situation of the entire hospitality sector is assessed slightly more negatively than in the third quarter. The service sector continues to prove supportive and robust. Positive signals are also coming from construction companies and the financial sector. However, the general mood remains subdued overall.
Although the unemployment rate has increased slightly, half of the companies surveyed have created additional jobs in recent months. The plan is for this to continue, especially in the service and financial sectors as well as in the hospitality industry.
According to the IHZ, the full extent of the impact of US customs policy on the Central Swiss economy is not yet apparent. Its opinion is that many affected companies can bridge the current situation in the short term, but not in the long term.
