Switzerland’s UBS consumption indicator came in above its long-term average in November at 1.67 points. This indicates strong consumption growth next year. Owing to strong economic growth, private consumption would likely carry on growing in spite of rising inflation.
The indicator dropped slightly in the month from 1.68 points. Values from earlier months were upwardly revised by a considerable margin in response to surprisingly solid summertime growth in overnight stays. New car registrations rose 1.3 percent in November, slightly below the average established in earlier months.
According to UBS Chief Investment Office Wealth Management, consumption is expected to expand 1.3 percent next year. Strong economic growth and moderately rising employment should continue to underpin private consumption. However, rising inflation has negatively impacted real wage growth and by extension, private consumption growth. Furthermore, third-quarter employment growth continues to be below the long-term average of 1.1 percent, only reaching 0.5 percent.
At 13:00 GMT the FxWirePro's Hourly Strength Index of Swiss Franc was highly bearish at -110.496, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -68.2596. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
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