- Bernd Hartmann, head of investment research at VP Bank
An indicator of domestic consumption in Switzerland continued gaining momentum in October, recovering from the weak levels seen in the summer, a report from UBS showed on Tuesday. The UBS Swiss consumption indicator added 0.27 points to 1.31 points in October, up from a revised 1.04 points in the preceding month, boosted by the increase in the number of new car registration, which soared 18% in October. The gain was limited by the weaker business activity in the retail sector as prices dropped significantly. Despite the poor sentiment, real retail revenue jumped by a respectable 3.5% from a month ago.
"Most analysts surveyed do not expect the economic situation to change much over the next six months," Credit Suisse said.
"The Swiss economy will have to get used to a weaker economic momentum," said VP Bank economist Bernd Hartmann. "There is a lack of fresh impulses in the shape of investments despite record low interest rates."
"The current level of the index paints too rosy a picture of Switzerland's economic outlook. A trend reversal can, however, be observed," said Bernd Hartmann, head of investment research at VP Bank.
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