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Swiss UBS consumption indicator dips slightly in January

Published 02/28/2012, 02:57 AM
USD/CHF
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Investing.com - Switzerland's UBS consumption indicator eased down slightly in January, industry data showed on Tuesday.

In a report, Swiss bank UBS said its consumption indicator eased down by 0.02 points to 0.92 in January from a reading of 0.94 in December, whose figure was revised up from 0.92.

Having risen towards the end of the last year, the UBS consumption indicator remained practically unchanged in January. The undiminished high level of new car registrations shows that consumer sentiment is robust.

The record number of new car registrations provided strong support to the consumption indicator. Looking at the underlying trend, net of seasonal effects, new car registrations are at their highest level since 1995.

The strong franc is likely to be the main driver of this record number of new car registrations, as it has pushed prices down.

UBS is still confident about the private consumption trend and expects the consumption indicator to exhibit an upward tendency in the coming months.

The UBS consumption indicator is calculated from five sub-indicators: new car registrations, retail sales, overnight stays in hotels by Swiss citizens, the consumer sentiment index and credit card transactions.

Following the release of the data, the Swiss franc was higher against the U.S. dollar, with USD/CHF shedding 0.26% to trade at 0.8970.

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