KOF hits decade-high; retail sugar-rush starting to fade

The Swiss economy contracted by more than those in the Nordics in the first half of the year but appears to have rebounded strongly in the third quarter. Rising virus cases in the country are something to watch but a repeat of a national lock-down seems unlikely. Next week, we expect Swiss inflation data from August to show that the headline rate remained rooted below zero. Meanwhile, the manufacturing PMI from the same month is likely to show that industrial output continued to recover.