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The Economic Sentiment Index, often referred to as the ZEW-CS Indicator for Switzerland, measures the level of optimism that financial experts have regarding the economic future of the country. It is based on a monthly survey of institutional investors and analysts who provide their outlook on the economy over a six-month horizon. A positive value indicates that the majority of experts are optimistic, while a negative value suggests a pessimistic outlook, serving as a key leading indicator for investment and growth.
The index is calculated as the difference between the percentage of positive and negative responses from surveyed financial experts. The survey covers expectations for the Swiss economy, inflation, interest rates, and stock market performance.