"We could say the trough has been reached and we are going deep into a recession"
- Julius Baer chief economist Janwillem Acket
Retail sales in Switzerland rose less than expected in October, implying that the economy is losing momentum. According to the Switzerland's Federal Statistical Office, retail sales rose 2.7% in October from a year ago, however, missing expectations for a 4.1% gain. The gauge, which measures a change in the total value of inflation, excluding automobiles and gas stations, and accounts for the majority of overall economic activity, came also lower from previous month's reading, when retail sales surged 5.0%. Excluding fuel, the nation's retail sector posted a seasonally adjusted decline in real turnover of 0.2% in October compared with the previous one, while Retail sales of food, drinks and tobacco fell 0.1%.
Also Monday, the Swiss SVME said its index, which measures manufacturing activity, rose to a seasonally adjusted 48.5 points, up from 46.1 points in October, reaching the highest level since July. Despite the improvement, data still remains below the 50-point growth threshold, which separates expansion from contraction.
"We could say the trough has been reached and we are going deep into a recession," said Julius Baer chief economist Janwillem Acket. "But it is not sounding the all clear. Employment figures are still getting worse and the figure is still under the growth threshold of 50 points."
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