- Swiss SVME purchasing managers' association and Credit Suisse
Producer and imports prices in Switzerland fell unexpectedly in May from a month earlier, reflecting that manufacturers are more worried about future economic performance of the country, even despite all other economic indicators showing stabilization. According to the Federal Statistics, the prices of domestically produced and imported goods declined 0.3% last month, compared with a 0.2% gain in April, and well below analysts' expectations of a 0.1% rise. On a yearly basis, prices edged down 0.2% in May, confronting expectations for a 0.1% rise. The report also showed import prices tumbled 0.4% from the prior month, taking the annual drop to 1.2%.
Recent data was surprising for analysts and market participants, as the economy expanded at a faster pace than it was initially expected, with private consumption helping it perform better than the neighbouring Eurozone. Moreover, retail sales, consumer prices and key manufacturing sector improved. According to the SNB's latest estimates, the country's GDP is likely to grow between 1% and 1.5% in 2013. The bank will update the forecast at its next policy review which is scheduled on June 20.
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