"Switzerland can't stay unscathed by the global economic slowdown"
- Ursina Kubli, currency strategist at Sarasin
Swiss industrial sector shrunk for the sixth month in a row in September, reaching the lowest level since June 2009, adding concerns that the economy is moving towards recession. Nation's Purchasing Managers' Index dropped to 43.6 in September, down from 46.7 in the previous month. A reading above 50 signals expansion, below reflects contraction.
"Switzerland can't stay unscathed by the global economic slowdown," said Sarasin currency strategist Ursina Kubli.
"A technical recession in Switzerland is being confirmed, I'd say we're shaping up for three negative quarters rather than two," said Julius Baer chief economist Janwillem Acket.
Also Monday, the Federal Statistics Office said that Swiss retail sales jumped 5.9% in August, following a 2.9% increase in the previous month. Analysts had predicted Swiss retail sales to grow to 4.1% in August.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies gained 1.77 per cent to 6,610.91. The broader Swiss Performance Index edged higher 1.68 per cent to 6,111.71.
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