Switzerland: Consumer confidence falls
August 7, 2013
The consumer confidence indicator published by the State Secretariat for Economic Affairs (SECO) fell from minus 5 points in the February-April period to minus 9 points in the May-July period. The reading disappointed market analysts, who had expected the indicator to rise to minus 1 point. As a result of the drop, the index moved further below the 0-point threshold indicating that pessimists still outnumber optimists.
According to SECO, the quarterly drop reflects consumers' more pessimistic view of the general economic situation in the next 12 months. In addition, households indicated that they see their personal financial situations growing worse in the year ahead. Consumers' expectations of future employment also deteriorated and there was no change in their likelihood to make major purchases.
Panellists polled by FocusEconomics expect private consumption to expand 1.6% this year, which is unchanged from last month's projection. The panel expects private consumption to increase 1.6% in 2014 as well.
Author: Ricardo Aceves, Senior Economist