The economic activity in Switzerland recovered in May with the KOF Economic Barometer standing at 98.5 points, as opposed to 97.1 registered in April, the KOF Swiss Economic Institute revealed in a report on Friday.

After declining last month, the outlook remains below its medium-term average. The majority of the production-side indicator bundles saw "positive developments," according to the report.

The most notable contributors to the increase were manufacturing, general business, financial and insurance services, and hospitality. Meanwhile, the demand-side indicator bundles for foreign demand and private consumption remained "under pressure."