Consumer sentiment improved in June, rising to minus 32 from minus 37 in May, helped by an improved economic outlook which improved to minus 38 from minus 43. At the same time, consumers judged their financial situation slightly more favorably at minus 27 in June versus minus 30 in May.

While expectations were somewhat more positive in June, consumers are still hesitant to make large purchases. Expectations for making large purchases fell to minus 56 in June from minus 55 in May.

Consumers seem to be relaxed about inflation, with the index for previous price developments falling to 114 in June from 117 in May. The June result is the lowest since at lease January of 2023. Expectations for inflation in the next 12 months fell to 96 in June from 100 in May.

While Swiss consumers are optimistic, they are clearly cautious and so long as they are, spending will remain subdued.

The State Secretariat for Economic Affairs (SECO) compiles a quarterly survey of consumer attitudes on present and expected economic and financial conditions. The survey covers around 1,200 Swiss households and results are synthesised into a single summary consumer climate index that attempts to measure consumer sentiment.

The pattern in consumer attitudes and spending is often a major influence on stock and bond markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth. Consumer spending accounts for a major portion of the Swiss economy, so investors want to know what consumers are up to and how they might behave in the near future. The more confident consumers are about the economy and their own personal finances, the more likely they are to spend. An increasing important element of the survey is the question concerning current buying intentions.