ZURICH: The Swiss economic activity maintained modest momentum in the first quarter, a pair of reports Wednesday indicated, suggesting that Switzerland continues to shake off some of the negative economic effects of a strong Swiss franc.
The KOF Economic Barometer, released by the Swiss KOF economic institute, was at 102.5 in March. Though slightly below February’s 102.6 reading–which was revised up from a previous estimate–the index remained above its long-term average.
“Positive signals came mainly from private consumption, while the indicators for the manufacturing sector and the export related indicators were negative,” KOF said in its monthly report.
Separately, the UBS Consumption Indicator advanced 0.08 point to 1.53 in February, with gains driven by automobile sales that offset subdued sentiment for the retail sector. The index signals “consistent, solid growth in private consumption,” UBS said.
Switzerland’s gross domestic product advanced 0.9% in 2015, down from 1.9% growth the previous year. Growth was limited by the strong Swiss franc, which jumped in January 2015 after the Swiss central bank abandoned a long-standing cap in the franc’s value against the euro.
A higher currency typically weakens exports, but cheaper imports may boost domestic consumption.
