"Evidently, the situation for industry has stabilised, although it is too soon to talk about a sustainable recovery"
- Swiss SVME purchasing managers' association and Credit Suisse
Producer and imports prices in Switzerland remained unchanged in July from a month earlier, reflecting that manufacturers are more worried about future economic performance of the country, and raising concerns over weak growth during the second quarter. According to the Federal Statistics, the prices of domestically produced and imported goods were flat last month, from June's 0.1% increase, and slightly below analysts' expectations of a 0.2% rise. On a yearly basis, prices, however, edged higher 0.5% in July, beating expectations for a 0.4% growth, and higher from a 0.2% increase in June. It is known that producer prices is a key indicator of consumer inflation, and latest data is showing muted price pressure, suggesting additional measures from the SNB will be needed to boost the economy and manufacturing sector in particular.
In a separate report the Centre for European Economic Research said that mood amid analysts and investors improved significantly in August, rising for the second consecutive month, reinforcing a view the situation in the country and Eurozone in stabilizing. A gauge of economic expectations ticked up to 7.2 points this month, up from 4.8 points a month earlier. These figures are suggesting the Swiss economy might move over to a gentle upward trend, after showing muted performance during the last three months.
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