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KOF coming back earth; Sweden powering ahead

The latest fall in the KOF Economic Barometer suggests that the tailwinds that have driven the rebound in the Swiss industrial sector are fading. But with the hospitality sector going from strength to strength, all signs point to Swiss GDP surpassing its pre-virus level in Q3 (if it didn’t quite manage it in Q2). Next week, we expect data released on Monday to show that the headline Swiss inflation rate rose to a 33-month high of 0.9% in July. Meanwhile, the set of manufacturing PMIs may provide further evidence that the rebounds in industrial activity have peaked.

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