How is the KOF Institute business indicator calculated?

The indicator is based on a survey of 4,200 Swiss companies. Companies describe their activity as good, satisfactory or bad, and the final parameter is calculated by calculating the difference between the percentages of positive and negative responses.

Which economic sectors show the greatest improvements?

In the monthly comparison, the situation improved in particular in the manufacturing sector with an index of 8.1, in the construction sector with 49.8 points and in financial services with 45.0 points. A step forward was also made by retail at 5.1 points.

Which sectors have difficulties according to the KOF survey?

The hotel and catering segment continues to struggle, registering a negative value of minus 2.5 points in the reference period.

What are companies' expectations on the price and inflation front?

The business realities surveyed by the KOF Institute expect inflation to average 1.2% over the next twelve months.

Business indicator companies: recovery in almost all sectors (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 5 August 2026

The economic situation of Swiss companies improves according to the KOF Institute of the Federal Polytechnic of Zurich, with an indicator of more than 21.5 points in July.

Context

In a nutshell

KOF indicator plus 21.5 points in July
Compared to the more 17.2 points in June
Widespread growth in almost all sectors
Expected inflation at 1.2% in the coming months

Key facts

What: Business performance of companies
When: July compared to June and the same month of the previous year
Where: Switzerland
Who: KOF Institute of the Federal Polytechnic of Zurich
Amount: 4200 companies surveyed

The economic situation of Swiss companies shows a significant improvement, based on the business performance indicator calculated by the KOF Institute of the Federal Polytechnic of Zurich. The benchmark stood at 21.5 points in July, registering a significant increase compared to the 17.2 points recorded in June and the 12.7 points recorded in the same month of 2025. This positive development highlights a climate of generalised confidence in the Swiss business fabric, offering important food for thought also for those operating on the cross-border labour market. To deepen the impact on your income, it is useful to check the situation through the calcolatore dedicated to salaries and taxes at source in the Canton of Ticino.

KOF survey methodology

The economic indicator is based on a structured survey to which 4,200 companies responded. The surveyed companies are asked to describe their current activity as good,

Operational details

Industry analysis and production dynamics

The ongoing economic recovery affects almost all the economic sectors monitored by the survey of the Federal Polytechnic of Zurich in a uniform way. Analysing the monthly comparison, marked differences emerge between the various production and service sectors. The situation has improved in particular in the manufacturing sector, whose index is now at 8.1, offering signs of stability for industrial production. An even more marked leap forward is recorded in the construction sector, which stands at 49.8 points, confirming an intense activity in construction sites and construction works. Financial services also recorded an excellent result, ranking at 45.0 points.

Comparison of commerce and catering

Alongside the strong growth segments, retail takes a measurable step forward at 5.1 points, signalling moderately strong domestic demand. On the other hand, the hotel and catering segment continues to struggle, scoring a negative value of minus 2.5 points. This divergence between sectors highlights how the tertiary sector linked to tourism and gastronomy still faces operational criticalities and cost pressures. For frontier workers employed in these specific areas, an understanding of company dynamics helps to assess employment stability and career growth prospects within Swiss companies,

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

Economic Outlook and Inflation

According to surveys by the KOF Institute, the price stability expected by Swiss companies for the next twelve months stands at an average inflation rate of 1.2%. This parameter offers a reassuring picture for the purchasing power and financial planning of families and workers. Monitoring economic trends makes it possible to anticipate companies' moves in terms of hiring, investments, and wage revisions. For those who live in Italy and cross the border daily to work in Switzerland, knowing the health status of the various economic sectors is a key element in guiding professional choices and evaluating potential job changes toward more dynamic sectors, such as construction or financial services.

Financial Planning and Verification Tools

The growth of the business indicator and the stability of inflation at 1.2% offer a favorable context for reviewing one's contribution and tax position. Economic variations in different sectors can affect contractual conditions and premiums related to social security and insurance coverage. It is essential to keep one's payslip under control and periodically verify the accuracy of the tax withholdings applied at source by the Swiss employer. For a precise evaluation of one's net salary in Swiss francs converted according to current parameters, it is recommended to use the official calculator available on the portal to accurately plan one's income and expenses.

Source: tio.ch

Frequently Asked Questions

How is the KOF Institute business indicator calculated?: The indicator is based on a survey of 4,200 Swiss companies. Companies describe their activity as good, satisfactory or bad, and the final parameter is calculated by calculating the difference between the percentages of positive and negative responses.
Which economic sectors show the greatest improvements?: In the monthly comparison, the situation improved in particular in the manufacturing sector with an index of 8.1, in the construction sector with 49.8 points and in financial services with 45.0 points. A step forward was also made by retail at 5.1 points.
Which sectors have difficulties according to the KOF survey?: The hotel and catering segment continues to struggle, registering a negative value of minus 2.5 points in the reference period.
What are companies' expectations on the price and inflation front?: The business realities surveyed by the KOF Institute expect inflation to average 1.2% over the next twelve months.