Swiss UBS indicator edges higher to 1.43 in Jan, signals solid growth in private consumption

Switzerland's UBS consumption indicator rose to 1.43 in January from a revised 1.38 in December. Data was slightly below economists' forecast for a score of 1.5 but the rise nevertheless signalled solid growth in Switzerland's private consumption.

UBS bank attributed the rise in the indicator to a clear improvement in consumer sentiment which showed considerable improvement from the previous quarter. Swiss consumers have become more optimistic about the economic and financial situation.

Labor market data is no longer rated pessimistically, the UBS noted. Swiss private consumption is set to grow robustly over the coming months as households' economic and financial expectations have improved considerably, results of a survey by the UBS bank showed Wednesday.

Though consumer sentiment has brightened with regard to national economic developments, the UBS bank remain cautious about consumption this year due to heightened political uncertainty in the euro area.

"There is still too much uncertainty on the capital markets given the upcoming elections in France and the unpredictability of the Trump administration," the bank said.