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CH: SECO Consumer Climate
| Actual | Previous | |
| Level | -40 | -43 |
Highlights
Consumer confidence improved in April, with the reading increasing to minus 40 from minus 43 in March as consumers expressed optimism about future economic developments. The result for the latter improved to minus 58 from minus 68 the previous month.
Inflation expectations waned in April as the index declined to 118 from 121 in March, with consumers feeling the same in about their personal finances. That reading stood at minus 32.
The reading on whether it was a good time to currently purchase big-ticket items held steady at minus 30, while expectations improved slightly to minus 55 from minus 58 in March.
Overall, the result can be taken as mildly positive with consumers upbeat about the future. That does come with a caveat however, as the survey was conducted in April when there was a tenuous cease-fire agreed to in the Middle East conflict. There is still no resolution, so sentiment could take a turn for the worse in the May results.
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.