"As in the previous quarters, positive contributions to growth came primarily from private consumption, while investments in machinery and equipment showed a marked increase for the first time in a year"
- The State Secretariat for Economic Affairs
Producer and imports prices in Switzerland advanced slightly in August from a month earlier, reflecting that manufacturers are less worried about future economic performance of the country, and solidifying a view the economy will continue gathering momentum. According to the Federal Statistics, the prices of domestically produced and imported goods rose 0.2% last month, from July's flat reading, and in line with analysts' expectations. On a yearly basis, prices also rose 0.2%. Furthermore, core PPI inched higher 0.1%, while core inflation of imported goods rose 0.4% following a 2.4% slump a month earlier. 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.
Earlier this month figures showed the labour market stabilized, retail sales dropped, while economic growth outpaced analysts' predictions. Moreover, holdings by the Swiss National Bank stood at 434.2 billion francs in August, slightly down from 434.3 billion a month earlier, as the Franc was relatively steady against the single currency. All these reports are suggesting the pressure on the Swiss Franc eased and the domestic economy is building up steam, suggesting brighter prospects for Swiss producers.
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