"The prospects for the Swiss economy are noticeably bleaker in the new year"
- KOF Swiss Economic Institute
The momentum of the Swiss economy slowed for the fourth consecutive month in January, adding to concerns that deepening Eurozone crisis weighed on business confidence. According to the KOF Swiss Economic Institute, a gauge of the Swiss economic performance during the next six month dropped to 1.05 points this month, down from 1.29 points in the preceding month.
"In comparison to previous months the cooling trend gathered some momentum in December. The prospects for the Swiss economy are noticeably bleaker in the new year," the KOF said in a statement.
"The KOF indicator was odd in the last months, it had been much stronger than the PMI, but it now seems to be falling back into line," said Sarasin economist Jan Poser.
In a separate report, the UBS bank said that Switzerland's consumption indicator strengthened further in December reflecting increases in hotel stays, despite no improvement in the retail industry. A gauge of consumption, which includes consumer confidence, consumer spending, tourism, new car sales, and retail activity, climbed to 1.34 from 1.23 in November.
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