Switzerland: thumbs up for UBS consumption indicator in September

The Swiss consumption indicator remained slightly above the long-term average in September, data from the UBS investment bank showed Wednesday. The UBS consumption indicator rose to 1.56 points in September, signalling consumption growth slightly above the long-term average. The indicator was supported by significantly higher expectations in the retail industry, but UBS still projects consumer spending to grow 1.3 percent for the year overall.

Driven by the franc’s devaluation against the euro in the last few months, the price competitiveness of Swiss retailers improved, which has in turn boosted the mood of retailers.
While the number of hotel stays by Swiss guests in the figures published in August was 1 percent higher than in the previous year, new registrations for passenger cars fell 6 percent in September. 

The UBS Consumption Indicator signals private consumption trends in Switzerland with a lead time of one to three months on the official figures. At more than 50 percent, private consumption is by far the most important component of Swiss GDP.