Swiss Consumer sentiment: confidence despite price increases

Swiss households remain very optimistic about the future of the economy. According to the October survey, the consumer sentiment index is very high despite the burden of rising consumer prices on household budgets.

The October consumer sentiment index of 4 points shows that sentiment among Swiss consumers is still very positive, sinking only slightly from its July level (8 points). This also significantly exceeds the index’s long-term average (−5 points).

Positive expectations of economic growth over the next 12 months made a particularly strong contribution to this figure, with the sub-index value of 44 points coming in well above its long-term average (−9 points). Consumers also judged the recent economic situation in far more positive terms than in July. This sub-index has moved past its crisis-related collapse of recent quarters and is once again close to its historical average.

In parallel with the economic recovery, consumers again perceive noticeable improvements to the labour market situation. The job security sub-index in particular climbed significantly from its previous low level. Expectations regarding unemployment figures largely reaffirmed the positive assessment seen in the July survey.

Consumers nevertheless had a slightly more negative view of both the past and future financial situation of households compared to July. They were also less confident about making major purchases, as this sub-index fell to −18 points, 6 points down on the previous quarter. Consumer price developments influenced this perception, as higher prices weighed on household budgets. Sub-indices on past and expected price developments reached their highest point since 2008.

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