Switzerland: Consumer sentiment remains pessimistic in the August-October period
November 1, 2018
Consumer sentiment among Swiss households was relatively unchanged in the August-October period, with the index prepared by the State Secretariat for Economic Affairs (SECO) inching up from minus 7 points in May-to-July to minus 6 points. As a result, the consumer sentiment index now stands slightly above its long-run average of minus 9 points but sits below the 0-point threshold separating pessimism from optimism among consumers.
Data showed that households remained optimistic about the outlook for the Swiss economy, with the sub index remaining above its long-term average. Consumers also maintained their positive perspective on job security and the labor market. On the other hand, expectations regarding household finances and savings were again below average. Moreover, consumers remained hesitant to purchase big-ticket items.
All told, October’s survey shows that while consumers expect the economy to remain in good shape over the next year, they do not foresee personal gains from the expansion. This is likely due to the fact that households are now more noticeably feeling the effects of higher inflation, which is eating into their discretionary spending.
Switzerland Private Consumption Forecast
Panelists polled by FocusEconomics expect private consumption to expand 1.4% in 2019, which is unchanged from last month’s forecasts. The panel expects private consumption to increase 1.5% in 2020.
Author: Lindsey Ice, Economist