Weekly Export Risk Outlook, February 4

02.05.2015 ZF English

The manufacturing activity stumbled in the US, while the Swiss industry will soon feel the effects of the franc's strength, Euler Hermes noted in this week's Export Risk Outlook report.

Following the removal of the exchange rate floor by the Swiss National Bank, Euler Hermes analysts expect the franc to be some 15% stronger against the euro than in 2014. The stronger franc will have a significant adverse effect on exports and output this year, according to this week's report.

Private consumption and importers will benefit from the franc appreciation, but investment will also be affected.

In the US, the Federal Reserve has kept its stance, and interest rates, unchanged at its January meeting. The economic growth in the fourt quarter was slower than expectations, at 2.6% quarter-to-quarter.

Meanwhile, the manufacturing sector appears to be stumbling... See more information in the full report.