PostedAugust 2, 2022, 7:54 PM
CrisisSwiss consumers are in low spirits
According to the Seco barometer, the Swiss have even less morale than at the start of the Covid crisis in 2020.
Households are very pessimistic about their financial situation.
LMD
Swiss consumer sentiment plunged in July. The consumer climate index in the third quarter fell by 42 points, according to the barometer of the State Secretariat for the Economy (Seco). It thus fell below the threshold level recorded at the start of the coronavirus crisis, in April 2020.
What puts the morale of the Helvetians at half mast? In particular, they fear a difficult period for the economy over the next 12 months. Households are also very pessimistic about their financial situation. The sub-index relating to the past financial situation (−35 points) fell to a level that it has not reached since the beginning of the 1990s, while that relating to the future financial situation (−35 points also) punctured the historical low of January 1995, explains the Seco.
In addition, the propensity for major acquisitions remains well below average. The corresponding index fell to -43.3 points (-31.3 points in the second quarter). The Swiss are reluctant to embark on major purchases, no doubt because of the evolution of prices, estimates the Seco.
On the other hand, the situation on the labor market is still assessed very favorably. Both job security and the development of the unemployment rate are assessed significantly more optimistically than the multi-year average.
Solid labor market
Estimates on the future economic situation suffered above all, plunging to -53.5 points against -31.4 points in the second quarter. The assessment of the future financial situation is not much better, posting -34.8 points after -24.9 points the previous partial. This indicator “has broken the historical low recorded in January 1995” and which was at -26 points, recalled the Seco.
Suddenly, the desire to make major purchases took a hit, the related index falling to -43.3 points, compared to -31.3 points in the second quarter.
On the positive side, the people questioned expect the situation on the labor market to remain “very favourable”, both in terms of job security (-27 points) and the evolution of the unemployment rate (27 points).
(cht)