"The weaker franc in recent weeks is helping exports but as long as there is no demand in the Eurozone, they will remain weak "
- Credit Suisse economist Maxime Botteron
A cluster of economic data from Switzerland has emerged on Tuesday, sending mixed signals, as the nation's trade surplus narrowed, while the labour market improved. Shipments from the country rose in April, supported by two extra working days in the month, which boosted sales in the chemicals and pharmaceutical sector. According to the Federal Customs Office data, exports from Switzerland rose by a real 6.9% last month to 17 billion Swiss francs; however, fell 3.7% when adjusted for the two extra working days. At the same time exports of pharmaceuticals and chemicals, which are the biggest export categories, surged 10.8%, while machines and electronic devices, added 4.6% and watch exports inched higher 2.3%. As a result Swiss trade surplus narrowed to 1.7 billion francs in April, down from 1.9 billion francs a month earlier.
Also Tuesday the Federal Statistical Office showed that the labour market improved, as employment level rose to a seasonally adjusted 4.15M, compared with 4.12M in the preceding quarter. The report also indicated that the quarterly indicators of the employment barometer showed an improvement in hiring, with the employment growing 2% in the first three months of this year. On Thursday data is likely to show that Swiss economy decelerated in the first quarter, with economic output rising only 0.9%.
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