mercredi 25 mars 2015
Swiss UBS consumption indicator: Slight increase from a low level
Posted on 00:06 by nice news
In February, the registration of new cars climbed 13% compared to January (seasonally adjusted). However, registrations in the first two months of this year were 3% lower than in the same period last year. New car sales in January 2015 were significantly lower due to the higher carbon tax on automobile sales.
Reflecting the pessimism felt by most Swiss retailers, the consumer sentiment index fell from 4 to -4 points. The franc's strength after the removal of the floor is likely hurting retailers, many of whom have begun offering rebates and discounts to counter increased shopping tourism to neighboring countries. This may well please consumers, because their purchasing power thereby increases, but the ongoing price pressure will leave companies with no option but to lower their costs. This will likely lead to lower salary increases and higher unemployment in 2015, which will ultimately weaken the purchasing power of private households and thus private consumption.
Reflecting the pessimism felt by most Swiss retailers, the consumer sentiment index fell from 4 to -4 points. The franc's strength after the removal of the floor is likely hurting retailers, many of whom have begun offering rebates and discounts to counter increased shopping tourism to neighboring countries. This may well please consumers, because their purchasing power thereby increases, but the ongoing price pressure will leave companies with no option but to lower their costs. This will likely lead to lower salary increases and higher unemployment in 2015, which will ultimately weaken the purchasing power of private households and thus private consumption.
Swiss UBS consumption indicator: Slight increase from a low level
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