Swiss Retail Sales Unexpectedly Rise 2.9% as Food and Household Spending Surge

Switzerland October Retail spending surged 2.9% from a year earlier after rising 6.4% the previous month despite expectations for a 2.0% gain. Purchases of kitchen and household products increased 4.8%, while food purchases rose 11.3% from October 2007. Sales of health and beauty products rose 5.5% and purchases of clothing and shoes stagnated. However, data suggest that economic activity is starting to turnover in Switzerland, although retail sectors having held up relatively well this year. Despite the surprising improvement, growth prospects may deteriorate further as the Swiss National Bank forecasts economic growth to falter going into the next year.

Switzerland Trade Surplus Widens as Import Demands Falter

The trade surplus for Switzerland widened to 2.15B from a revised reading of 1.95B in October on the back of weaker imports. Export declined 11.4% from a year earlier while imports dropped 9.9%. The data suggests that demands from the global economy may remain subdued well into the next year as the Euro-Zone, Switzerland’s biggest trading partner, slipped into a recession. Meanwhile, negative import growth emphasizes dwindling domestic demand.

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