| Actual | Previous | |
|---|---|---|
| Balance | CHF4.05B | CHF3.13B |
Highlights
The Swiss merchandise trade surplus rose to CHF4.05 billion in August from the unrevised CHF3.13 billion in July.
That leaves the Swiss RPI at minus 23, unchanged from the previous report, while the RPI-P was also steady at minus 27.
Exports increased by 2.0 percent to CHF21.2 billion, while imports slipped by 3.0 percent to CHF17.1 billion.
The Swiss franc was little changed on the news, hovering near $1.1133, after recovering slightly on Monday, having hit a two-month low against the dollar last week.
But currency movements may have only a marginal bearing on the Swiss National Bank's deliberations on Thursday, with inflation falling below the SNB's 2 percent target. The consumer price index steadied at a year-over-year rate of 1.6 percent in August. Nonetheless, economists are betting that the SNB will lift its benchmark rate by 25 basis points to 2 percent, the highest level since 2008.
That leaves the Swiss RPI at minus 23, unchanged from the previous report, while the RPI-P was also steady at minus 27.
Exports increased by 2.0 percent to CHF21.2 billion, while imports slipped by 3.0 percent to CHF17.1 billion.
The Swiss franc was little changed on the news, hovering near $1.1133, after recovering slightly on Monday, having hit a two-month low against the dollar last week.
But currency movements may have only a marginal bearing on the Swiss National Bank's deliberations on Thursday, with inflation falling below the SNB's 2 percent target. The consumer price index steadied at a year-over-year rate of 1.6 percent in August. Nonetheless, economists are betting that the SNB will lift its benchmark rate by 25 basis points to 2 percent, the highest level since 2008.
Definition
The merchandise trade balance measures the difference between the total value of Swiss merchandise exports and imports. The focus is on the balance of trade in goods, excluding precious metals, gemstones, works of art and antiques. This is provided in unadjusted and seasonally adjusted measures for cash and volume.
Description
Changes in the level of imports and exports along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect the value of the Swiss franc in the foreign exchange market. Switzerland's major trading partners include Germany, France, Italy and the United States. While Switzerland still exports large amounts of traditional products such as chocolate and watches, more than half of Swiss exports are in mechanical and electrical engineering and chemicals today. A positive trade balance indicates a trade surplus while a negative balance represents a trade deficit. Trade surpluses indicate that foreigners are buying more Swiss goods, which are typically paid for in Swiss Francs. This translates into greater demand for the currency and upward pressure on the value of the Franc. However, if the balance is a deficit, Swiss consumers are buying goods from trading partners which translates into higher demand for foreign currencies placing downward pressure on the value of the Franc.
