FXstreet.com (Barcelona) - Swiss consumer climate has worsened slightly in May although it still remains at a considerably high level, due to a healthy labour market, according to the latest release by the UBS Consumption Indicator.

The monthly consumption indicator has declined to 1.91 in May, from 2.16 in April, and 2.25 in March. Despite two months of continuous decline, according the UBS Institute, the index remains well above the 1.50 long-term average level.

According to the report, Swiss consumer spending remains firm, supported by a encouraging situation in the labour market, which reinforces projections for household incomes. Nevertheless, the recent hike on inflation has weighed somewhat on the Swiss consumer sentiment, although the UBS expects inflation to moderate in the up coming months.