Swiss GDP missed expectations in Q3

Switzerland's economic growth remained unchanged unexpectedly in the third quarter as increase in investment was offset by net trade, the State Secretariat for Economic Affairs said Friday.

In a report, Federal Statistical Office said that Swiss GDP remained unchanged at a seasonally adjusted 0.0%, from 0.6% in the preceding quarter. On the expenditure side, household spending gained 0.1%, while government expenditure dropped 0.1%. Equipment and software investment as well as construction investment climbed 0.5% each.

Meanwhile, exports of goods dropped 0.2% and that of services slid 0.8%. On the other hand, imports of goods rose 0.2% and services import remained flat.

Year-on-year, GDP growth eased to 1.3 percent from 2 percent in the second quarter. The annual rate was also weaker than the expected 1.8 percent expansion.

Economists had been expecting improvement as Switzerland overcomes the worst effects of the franc's appreciation since the Swiss National Bank scrapped a ceiling on its value against the euro nearly two years ago.
The central bank, which has been intervening in the currency markets and imposed negative interest rates to stem demand for the franc, is due to give a policy update on December 15.
"Although some sectors such as parts of the machinery industry and, more generally, smaller companies continue to suffer, the Swiss economy has on the whole learnt to live with the stronger currency," Oliver Adler, head of economics at Credit Suisse, had said before the latest data.