Tourism improved Swiss UBS Consumption indicator for October

The Swiss UBS consumption index rose slightly to 1.49 for October from a downwardly-revised 1.47 previously, which was originally reported as 1.59.

The sizeable downward revision will cause some concerns and the index overall has not changed significantly over the past 3 months, although the overall impact will be limited.

Although positive developments in the automobile market and strong domestic tourism supported private consumption, the fall in retail sales prevented a strong growth. In September, the number of hotel stays of Swiss tourists climbed by 1%, the third successive increase.

There was a retreat in car registration for October, although there was still a solid increase for the first 10 months of the year. The Swiss motor vehicle association auto-swiss reckons that the original forecast of 305,000 new registrations for 2016 will be met or even slightly exceeded, the bank said.

The overall retail sector remained weak, however, with only a slight recovery in the component for October as underlying sentiment remained negative. It declined 2.7 percent in September. The year will have to end on a high note to halt the continuing decline in the retail sector. The retailers' hopes now rest on Christmas sales, which are just beginning, the bank added.