Switzerland: Retail sales slow sharply in January
March 11, 2013
In January, retail sales increased 1.9% over the same month last year, which marked a significant deceleration compared to the revised 4.7% expansion recorded in December (previously reported: 5.1% year-on-year). In addition, the reading undershot market expectations, which had retail sales increasing 2.8%. The monthly slowdown reflected a deceleration in sales of food, beverages and tobacco as well as in the non-food sector.
A month-on-month comparison does not corroborate the positive growth suggested by the annual data, as retail sales dropped a seasonally adjusted 0.5% in January, which contrasted the 0.9% increase registered in December.
As a result of the January deceleration, the trend now points downwards, with annual average growth in retail sales inching down from 3.6% in December to 3.5% in January.
Panellists polled by FocusEconomics expect private consumption to expand 1.1% this year, which is unchanged from last month's projection. For 2014, the panel expects private consumption to increase 1.6%.
Author: Ricardo Aceves, Senior Economist