| Source: KOF Economic Institute
The KOF Business Situation Indicator for the Swiss private sector, which is calculated on the basis of KOF Business Tendency Surveys, fell again at the beginning of the year. Weak foreign demand in particular is weighing on the export sector. However, there is a silver lining on the horizon: firms are much more confident about the next six months than they were previously. Manufacturing industry complaining about lack of demand The direction of the Business Situation Indicator varies from sector to sector. The situation in manufacturing industry remains challenging. More than half of companies in this sector are complaining about a lack of demand. The further strengthening of the Swiss franc is potentially a negative factor. However, this pressure is nowhere near as strong as it was in the first few months of 2015, for example, following the removal of the Swiss franc floor against the euro. Moreover, companies are currently more confident about their export prospects than they were back in the autumn. In addition to manufacturing firms, wholesalers, the hospitality industry and financial and insurance service providers have also reported a dip in their fairly strong business activity. The business situation in the construction, project engineering and retail sectors has hardly changed. Business in other services has improved slightly. Firms have become more confident about their expectations for business tr |