"The latest turbulence in the Eurozone and recent slight appreciation of the Swiss franc has slowed - though not halted - the recovery in Swiss economic activity"
- Credit Suisse
Swiss industrial output fell significantly during the last three months of 2012, as investors' confidence was hit by the continuous economic slump in the Eurozone, the Swiss Statistics Office said Monday. Country's industrial production expanded by 1.7% in the Q4 compared with the same quarter of the previous year, when the output surged 7.9%. Meanwhile, the turnover rose by 3.1%, while orders received decreased by 2.4% and orders on hand remained unchanged. Swiss economy expanded in the last quarter of 2012 by 0.2%, while the KOF barometer of Swiss economic sentiment fell less than expected, giving weight to claims the economy is on the verge of turning a corner. The Eurozone is nation's biggest trading partner and confidence in the Swiss manufacturing sector is directly linked to developments in the region.
"The latest turbulence in the Eurozone and recent slight appreciation of the Swiss franc has slowed - though not halted - the recovery in Swiss economic activity," said Credit Suisse and the SVME purchasing managers' association.
"It is doubtful that Switzerland is already on a sustainable recovery path. The economic problems in the Eurozone are having an increasingly strong impact on the Swiss economy," VP Bank economist Bernd Hartmann said.
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