"The current level of the index paints too rosy a picture of Switzerland's economic outlook"
- Bernd Hartmann, head of investment research at VP Bank
The UBS Swiss consumption indicator fell last month, implying weak domestic demand, the Swiss bank's economists said on Thursday. An indicator, which includes five economic indicators, such as consumer confidence, consumer spending, tourism, new car sales, and retail activity, dropped to 1.23 in November, down from 1.30 in October. The decline is primarily due to the drop in new car registrations and the lower number of hotel stays, with the number of new registrations falling 3.5% from a year ago. However, the improvement in business situation in the retail industry staved off a more significant decline.
"The current level of the index paints too rosy a picture of Switzerland's economic outlook," said Bernd Hartmann, head of investment research at VP Bank. "It is doubtful that Switzerland is already on a sustainable recovery path. The economic problems in the eurozone are having an increasingly strong impact on the Swiss economy."
"The Swiss economy will have to get used to a weaker economic momentum. There is a lack of fresh impulses in the shape of investments despite record low interest rates," he added.
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