Switzerland’s consumption grew modestly in September, led by the marginal increase in new vehicle registrations despite the more pessimistic mood in the retail sector, survey data from the investment bank UBS showed Tuesday.
The UBS Consumption Indicator edged up to 1.65 points from 1.64 in August, which was revised up from 1.63.
The indicator signals private consumption trends in Switzerland with a lead time of one to three months on the official figures. It is calculated based on six consumer related parameters. Private consumption accounts for more than 50 percent of Swiss GDP.
Seasonal factors buoyed new vehicle registrations in September and the corresponding indicator has risen 9 percent over the first three quarters of the year versus last year.
Further, lower prices for imports such as automobiles in Swiss francs could be the likely reason for the increase in registrations, the UBS report said.
Import prices fell by almost one-tenth in the January to September period, according to calculations by the Swiss Federal Statistical Office.
Consumer durables purchases are also being driven by the low interest rates. Meanwhile, the Swiss retail sector remains sluggish, as currency fluctuations have little impact on prices where production costs are incurred mostly in Switzerland.
Consequently, retail prices have remained stable, damping consumption in a trend compounded by shopping tourism, as Swiss consumers looked for bargains over the border.
The material has been provided by InstaForex Company – www.instaforex.com