Consumer sentiment improved to minus 34 in November from minus 37 in October to its best reading since July, with consumers indicating it is a good time to make major purchases. That component rose to minus 25 from minus 25 in October.

At the same time they expect an improvement in economic conditions, perhaps due to the agreement on tariffs reached with the United States. The expectations index rose to minus 39 in November from minus 49 the previous month. Expectations for personal finances also improved, gaining to minus 29 from minus 32.

Even with the improvement in some sectors, Swiss consumers are the most pessimistic about job security since at least January 2023. Novembers result was minus 61 after minus 54 the previous month.

While the improvement is a welcome development, the deteriorating job market situation could lead to a pullback in consumer spending.

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.