ZEW indicator for Swiss economic sentiment rises in October

Economic expectations for Switzerland continue to rise. The ZEW-CS-Indicator for Swiss economic confidence has risen in October 2016 by 2.5 points. The indicator now stands at 5.2 points and there continues the slight upward trend seen in September. The current economic situation indicator also saw a rise. It rose 9.9 points to 17.9 points in October.

About 69.2 percent of the surveyed experts anticipate the Swiss economy to remain unchanged in the following six months. The percent of respondents holding this view rose 8.7 percentage points as compared to the earlier month.

However, the surveyed experts are quite optimistic about their projections for the euro area and the U.S. The indicators for the both rose to 8.1 for the euro area and 35.1 for the U.S. Over 70 percent of experts consider the current economic situation in the U.S., Switzerland and the euro area to be normal, stated ZEW.

The latest survey showed that Swiss inflation rate is likely to continue to rise. Over half of the experts project a rise in inflation rate for the coming six months for the first time since May 2011. Long-term interest rates in the country are also likely to rise. The respective indicator rose 6.4 points to 56.5 points.

However, the respondents indicate great negativity regarding the Swiss stock market. Only 37.1 percent of the respondents anticipate Swiss Market Index to rise in coming six months.