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CH: SECO Consumer Climate
| Actual | Previous | |
| Level | -30 | -31 |
Highlights
Consumer confidence improved to its best reading since January of last year, gaining 1 point to minus 30.0, helped by an increased propensity among consumers to spend on big-ticket items.
Expectations for spending increased to minus 51 from minus 53 in December, and matches the reading of July of last year, and is the highest since at least January of 2023. Consumers were also more optimistic about the labor market, with the measure for job security improving to minus 60 from minus 62.
Both measures of consumers' financial situation brightened. They judged their past situation more favorably, at minus 37 in January, versus minus 39 the month before. Expectations improved to minus 26 from minus 28.
At the same time, consumers expect the economic situation to worsen, with the reading falling to minus 34 from minus 32.
Overall, consumer confidence started the year on a positive note. They expect prices to fall over the coming twelve months, which could explain the slight increase in confidence since they expect to have more disposable income.
Definition
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.
Description
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.