Switzerland: Pessimism among Swiss consumers worsens
November 6, 2014
Consumer sentiment among Swiss households deteriorated sharply in the August-October period. According to the State Secretariat for Economic Affairs (SECO), the consumer confidence indicator fell from minus 1 point in the May-July period to minus 11 points in the August-October period. The fall exceeded the drop of minus 5 points that markets had expected and represented the lowest level since the July-October period of 2012. The reading fell further below the 0-point threshold that separates optimistic consumers from pessimistic.
According to SECO, “the sub-indices reflecting expected economic development and expected unemployment, as well as job security reported a significant deterioration in October.” Accordingly, consumers were more pessimistic regarding both the country’s current economic situation and its economic outlook. In addition, consumers indicated that they felt slightly more pessimistic about their personal financial prospects, which had a negative impact on households’ willingness to make major purchases in the future.
Author: Ricardo Aceves, Senior Economist