Swiss retail sales rebound

Swiss retail sales in September have ripped through economists’ initial expectations of 0.8 percent annual growth to post a rise of 6.4 percent, according to figures from the Swiss Statistics Office.

Within the period, the nation has experienced rising wages and almost five years of consecutive labour market growth has meant that consumers have been given the courage and security to spend.

Top of the spending list has been consumer electronics, namely flat screen TVs and luxury cars with Volkswagen posting strong sales.

Consumer electronics increased by 10 percent from last year while spending on kitchen and household products increased 14 percent.

However, it was the essential items that have also received a boost such as the ten percent increase in food purchases over the year.

The prospect of a recession being around the corner has meant that consumers are now beginning to think about saving more and spending less as the threat of job cuts loom.

Economists indicate that consumer saving is rather surprising given the relative strength of the labour market which is supporting the high consumption.

However, it is fairly clear that the Swiss are looking to their European neighbours in recession and realising it is prudent to save in the prevailing global economic conditions.

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