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CH: SECO Consumer Climate
| Actual | Previous | |
| Level | -36 | -38 |
Highlights
Consumer confidence improved slightly in June, rising to minus 36 from minus 38 in June, as they were optimistic about their expected financial situation, which improved to minus 32 from minus 34.
In addition, they see inflationary pressures waning over the next twelve month, with that measure falling for the third consecutive month to 109. Still, consumers are worried about job security, with the result of minus 63 the lowest since at least January of 2023.
Consumers appear to be of tepid mind when judging whether the present is a good time to make a major purchase, the reading of minus 28, is a tick better than the minus 29 in May. As for making a major purchase down the road, the situation is the same, with a reading of minus 54 in both May and June only slightly better than minus 55 in April.
Clearly the situation in the job market is making consumers cautious. The previous jobs report showed more people looking for fewer jobs, and there is likely continued concern about AI taking more jobs. Even with the situation in the Middle East playing havoc with fuel prices, day-to-day life continues, but there is little doubt that is keeping consumers cautious.
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.