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CH: SECO Consumer Climate
| Actual | Previous | |
| Level | -33 | -35 |
Highlights
Consumer sentiment stood at an index value of minus 33 in August, and improvement from minus 35 in July and a notable improvement from minus 40 compared to August of last year, though the reading remains firmly in negative territory.
Among the sub-indices, the economic outlook component showed the sharpest year-on-year improvement, rising to minus 36 in August from minus 66 a year earlier, suggesting households have become considerably less pessimistic about the broader economic trajectory. The assessment of past financial situation also improved modestly, moving to minus 39 from minus 40, while the financial outlook component softened slightly, slipping to minus 30 from minus 29.
The willingness to make major purchases weakened somewhat, falling to minus 26 in August from minus 24 a year ago, pointing to continued caution around big-ticket spending even as broader sentiment recovers.
Overall, the data suggests Swiss consumers are notably more optimistic about the general economic environment than a year ago, though this hasn't yet translated into stronger appetite for major purchases or meaningfully better views on personal finances.
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.