Swiss consumer confidence improves in July

The State Secretariat for Economic Affairs (SECO) reported that consumer sentiment in Switzerland improved again in July.

According to SECO report, the consumer sentiment index came in at -3 points in the third quarter, up from -8 in the prior quarter and well above the long-term average of -9 points. The reading matched economists forecast.

The report confirmed the recovery in sentiment from the lows following the sharp rise in the Swiss franc, the SECO said.

According to the report, consumers' expectations for economic growth and for the job market in July became considerably more optimistic compared to April. The sub-index that measures optimistic regarding the general economic prospects over the coming twelve months climbed from +5 points in April to +16 points in July, while sub-index that tracks unemployment outlook dropped from +48 points to +41 points.

In contrast, consumers' expectations for their own financial situation and their ability to save money showed no improvement. At -4 points, the sub-index on the anticipated financial situation remained virtually unchanged in July compared to April (-3 points), considerably below its long-term average of +2 points. At the same time, the sub-index on consumers' anticipated opportunities to save came in at +17 compared to +15 in the previous survey and slightly below the average of +21 points. The SECO noted, however, that the situation with these two questions could change if the job market does recover as consumers expect.