RTTNews - Tuesday, the UBS said its consumption indicator for Switzerland fell slightly to 0.92 in April from 0.99 in March, resuming the downtrend after a rise in March. The indicator has thus remained below its long-term average of 1.50 for seven months.
At its current level, the UBS consumption indicator signals that Swiss consumer spending is continuing to increase slightly. The prospects are, however, becoming increasingly gloomy.
The UBS said, in the course of the economic downturn, unemployment is likely to increase significantly in the coming months, which will have a negative impact on consumption tendencies. However, falling inflation, especially with regard to energy sources, is likely to bolster purchasing power and hence consumer spending.
The UBS forecasts consumer spending in Switzerland to rise 0.4% in 2009 following 1.7% increase in the previous year.
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