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CH: SECO Consumer Climate
| Actual | Previous | |
| Level | -35 | -36 |
Highlights
Consumer sentiment improved marginally in July, rising to minus 35 from minus 36 in June, although the components were of mixed results.
Economic expectations improved to minus 37 from minus 40 in June, while expectations of future finances were steady at minus 32, having improved from minus 34 in May.
Consumers turned more cautious about making major purchases in the future, with the measure falling to minus 55 from minus 54. At the same time, however, price expectations have eased, with expectations for the coming twelve months falling to 106 in July from 109 in June.
Finally, the mood around job security remained at minus 63, which is the most pessimistic since at least January of 2023. This reflects the current state of the job market as shown by the labor market statistics which show more job seekers chasing fewer jobs.
Consumers clearly remain cautious which comes as no surprise given the situation in the Middle East and threats of more tariffs from the United States.
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.