Swiss recovery is becoming more broad-based

The Swiss economy enters the second half of the year with more momentum. The KOF Economic Barometer rose to 103.5 points in July, above its long-term average. The encouraging feature is that the improvement does not come from one sector alone.

Services, construction and parts of consumer demand are more stable. That improves the outlook for small and medium-sized businesses without eliminating the risks.

Export-oriented manufacturers are particularly sensitive to exchange rates, global demand and trade disputes. A stronger domestic economy can therefore offset weak foreign signals only partly.

Companies are investing where productivity and energy efficiency can improve quickly. Caution remains visible around larger capacity decisions.

The data point to recovery, not a boom. The key question is whether orders, employment and investment follow the improvement in sentiment.

For Switzerland, the breadth of the upswing matters more than one monthly reading. That is precisely where the picture has recently improved.