"The quarterly estimates of Swiss economic growth published in early September show weaker growth in private consumption for the second quarter in a row. The domestic sector, previously a pillar of the Swiss economy, has lost much of its momentum."
- UBS
According to the latest release of consumption indicator, calculated by the UBS Bank in Switzerland, country's consumers became less confident concerning near-term perspectives of Swiss economy. The benchmark index dropped significantly in August, reaching 1.35 points from 1.67 a month ago. Economists describe that deterioration was registered among all subsectors and indicators, which were released earlier. Car registrations lost 5.8% on the annual basis, while the sub-indicator for retail business activity, calculated by KOF, decreased to 2 points last month, which was below the long-term average level of 6.2 points.
Along with its European counterparts, Swiss economy struggles to gain growth momentum in the third quarter, influenced by low advance in private consumption and unfavourable geopolitical situation. Switzerland was one of the last countries to impose sanctions on Russia; however, the counter-measures from Russia followed and had impact on all countries across the continent. Moreover, consumers are becoming less optimistic, as consumption rose only marginal 1.2% in January-June of this year on a yearly basis, down from a 2.2% average growth two years before. UBS experts have subsequently lowered GDP forecast for Switzerland, as they expect the economy add 1.3% this year, while the next year it is assumed to surge 1.6%.
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