Confidence grows in economy

The Swiss business climate is on course for steady improvement during the next three months, according to a survey by the Swiss Economic Institute (KOF).

The research centre at the Federal Institute of Technology in Zurich (ETHZ) asked 7,100 enterprises about their perceptions of the economy. It found a largely positive outlook among the industrial, commerce and service sectors as factories increase production.

The report, published on Friday, showed that manufacturing capacity had increased from 80 to 83 per cent in three months. That is the biggest leap since 2004.

Industry and wholesale businesses still face risks posed by a strong franc, yet companies that rely heavily on exports still expect to do better than businesses focused on the Swiss market, said Jan-Egbert Sturm, KOF director.

“The Swiss economy is benefiting from a recovering world economy, especially in Asia and Latin America,” he said.

Consumer demand appears to be too low, but for the first time since the New Year 2008/2009 retailers are reporting that the number of shoppers has increased. Just 11 per cent of retailers complain of excess inventory, the survey found.

Hospitality businesses can also see the light at the end of the tunnel, although slightly more than half of companies surveyed still say business is just “satisfactory”.

Banks and insurance companies also have growing confidence in the future. Banks expect no more job cuts and say private client business has been brisker than corporate business. Just five per cent of insurance companies surveyed said they planned to increase premiums.

swissinfo.ch and agencies