Rising prices put pressure on Swiss consumers and industry
Consumers in Switzerland are much more pessimistic about the general economic situation, with households feeling the strain as prices continue to rise, a new survey shows.
This content was published on
3 minutes
SECO/Keystone-SDA/Reuters/sb
Português
pt
Aumento dos preços exerce pressão sobre produtores e consumidores suíços
April data published by the State Secretariat for Economic Affairs (SECO) on Monday shows that overall consumer sentiment has deteriorated “significantly” in recent months.
The consumer sentiment index for last month fell by 27 points, from -3.8 points in January, marking the biggest decline since the onset of the pandemic in the spring of 2020, SECO said.
“Households are feeling the strain as prices continue to rise,” SECO said. Swiss households are particularly pessimistic about how the economic situation will develop over the next 12 months.
“Inflation is dampening households’ purchasing power,” said SECO.
The rate of inflation in Switzerland rose to 2.4% in March, having risen at a gentler momentum of 0.6% during the whole of last year.
Negative expectations about the economy, how their financial situation will progress, and “heightened uncertainty in connection with the war in Ukraine, is likely to be a major driver in consumers’ current reluctance to make major purchases”, said the government.
Despite the overall negative outlook, consumers’ expectations about the labour market situation remain better than average, it added. Since January, there has been a “marked improvement” in sentiment about job security. In addition, unemployment figures are expected to continue to develop favourably over the next 12 months, said SECO.
Industry strains
Swiss industry is also straining due to higher prices. Switzerland’s manufacturing Purchasing Managers Index (PMI) continued its downward trend in April, according to additional data published on Monday.
The PMI points to the health of the industrial sector by measuring the amount of materials being bought by companies for manufacturing over the next three to six months. The PMI fell to 62.5 points in April from 64.0 points in March. The figure nonetheless remained above the 50 level which indicates expansion.
“Supply chain problems are gradually easing. However, prices are rising and there are no signs of this trend softening significantly for the time being,” said Credit Suisse, which compiles the PMI survey with Swiss purchasing managers’ association procure.ch.
“The high backlog of orders and solid labour market are encouraging signs for the trend going forward,” Credit Suisse said. The recovery in Swiss manufacturing is continuing, but there are growing signs momentum is slowing, it said.
More
More
Swiss trade unions sound alarm about rising cost of living
This content was published on
Unions say workers in Switzerland are facing a “shock” in 2022, with wages unable to offset inflation and health insurance costs.
Switzerland to introduce flight passenger database
This content was published on
Switzerland plans to introduce a flight passenger database to collect and process personal data in a bid to combat terrorism and serious crime.
Government plans to invest over CHF16bn in Swiss rail network
This content was published on
The federal government intends to invest CHF16.4 billion ($18.1 billion) in railway infrastructure between 2025 and 2028, CHF2 billion more than for the current period.
Swiss to vote on pension reform and biodiversity in September
This content was published on
Swiss citizens will vote on occupational pension schemes and a biodiversity initiative on September 22, the Federal Council announced on Wednesday.
Ukraine peace talks: 50 countries have confirmed participation
This content was published on
To date, 50 countries out 160 invited delegations have confirmed they will attend the Ukraine peace conference, held in central Switzerland in mid-June, according to Swiss public radio, RTS.
Federer-backed On boosts forecast after sneaker demand rises
This content was published on
Swiss footwear company On Holding AG posted strong first-quarter revenue, boosted by demand for its running shoes and new line of training apparel.
Michael Schumacher’s watches fetch CHF4 million at Swiss auction
This content was published on
Watches belonging to Formula 1 great Michael Schumacher sold for around CHF4 million ($4.41 million) at auction house Christie's in Geneva on Tuesday.
Macron will attend Swiss summit on Ukraine, says Zelensky
This content was published on
French President Emmanuel Macron will attend the peace conference on Ukraine at the Swiss Bürgenstock resort next month, according to Volodymyr Zelensky.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Swiss central bank rejects ‘creative’ demands to change course
This content was published on
The Swiss National Bank beats off demands to fight inflation by raising interest rates and to distribute more reserves to cantons and other causes.
Swiss trade unions sound alarm about rising cost of living
This content was published on
Unions say workers in Switzerland are facing a “shock” in 2022, with wages unable to offset inflation and health insurance costs.
Swiss economy holds up despite Ukraine uncertainty
This content was published on
Economists have confirmed their previous growth forecast for Switzerland of just under 3% for 2022, but this is only in the most favourable scenario.
Inflation and interest rates: how Switzerland is different
This content was published on
It will be a while before inflation drops again, according to Nannette Hechler-Fayd’herbe, head of investments at Credit Suisse.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.