- Julius Baer Chief Economist Janwillem Acket
Switzerland's manufacturing activity contracted for the seventh consecutive month in October, but at a slower pace, due to weak domestic demand. According to the Federal Statistical Office, purchasing managers' index improved to a seasonally adjusted 46.1 points in October, up from 43.6 points in the prior month. Despite, the reading beat analysts' expectations of an increase to 44.5, Swiss leading indicator of economic health remains below the 50 mark, which separates growth from contraction.
"We're heading for a very difficult winter," said Julius Baer Chief Economist Janwillem Acket. "There's no quick growth perspective ahead."
Also Thursday, the Federal Statistics Office said Swiss retail sales added 5.4% in September compared to a reading of 6% in the preceding month. Analysts, however, expected that the gauge for goods sold at retail outlets would grow by 6.4%.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies, added 0.99 per cent to 6,660.25. The broader Swiss Performance Index jumped 0.97 per cent to 6,147.80.
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