Swiss economy sending mixed signals

After a stronger-than-expected growth figure last week, Swiss statistical office posted mixed data on Monday, with jobless rate remaining on hold, while retail sales unexpectedly dropped. The State Secretariat for Economic Affairs said the nation's unemployment rate stood at 3.2% in August, unchanged from the previous month, while the unadjusted jobless rate came in at 3%. However, the number of jobless people rose slightly, as there were 129,956 people out of the labour force in August, 1,440 more than in the previous month. On a yearly basis the indicator climbed higher 10,133. In addition to that youth unemployment rose by 2,566 reaching 20,197. Another report showed sales at retailers in the Alpine country increased at a notably slowed pace in the middle of summer, reflecting weak domestic demand and unwillingness to spend. On a working-day adjusted basis retail sales rose 0.8% in July, significantly less than the 2.3% gain recorded in June. Core retail advanced 0.6%, following a 2.2% increase in June. 

While measures done by the Swiss National Bank helped to stabilize consumer prices and GDP grew 0.5% in the second quarter, outpacing analysts' projections of a 0.3% growth, the recent figures are reflecting consumers' and businesses' concerns over the economic outlook. As the economy is facing high risks that can dampen economic recovery, companies are not hiring more people, while consumers are increasing spending.