"The Swiss economy will have to get used to a weaker economic momentum"
- VP Bank economist Bernd Hartmann
Switzerland's UBS consumption index rose surprisingly in September, a sign the economy is gaining momentum, according to UBS. Consumption index, which is the most important component of Swiss GDP, jumped to 1.07 points in September, up from a revised 1.02 points in the previous month. Analysts had expected the index to drop to 0.84. The improvement in data may help Switzerland to avoid the recession, as the economy contracted for the first time in nine months in the second quarter, falling 0.1%.
"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 question is: Where is growth in the near future supposed to come from?"
"There is a slight tendency higher to a positive area. However, this doesn't mean the SNB has reason to act," said David Marmet, an economist at Zuercher Kantonalbank.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies, added 0.48 per cent to 6,633.10. The broader Swiss Performance Index jumped 0.47 per cent to 6,122.53.
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