Swiss Consumer Sentiment Hits Historic Low

(RTTNews) - Swiss consumer confidence weakened to the lowest level since the survey began in 1972, survey results from the State Secretariat for Economic Affairs, or SECO, showed Tuesday.

The consumer confidence index fell more-than-expected to -46.6 in the fourth quarter from -41.7 in the preceding period. The expected score was -43.0.

Among the main four sub-components, consumers' expectations on how the general economic situation would develop over the next twelve months became even gloomier. The expected economic development index declined to -57.2 from -53.5 in the prior quarter.

Households were more pessimistic about their own financial situation largely due to high inflation. At -39.7, the past financial situation index reached a record low, down from -35.1 a quarter ago. The expected financial situation also fell to a new low of -46.9 from -34.8.

Finally, consumers surveyed remained cautious about making large purchases. The corresponding index slid to -42.4 from -43.3 in the previous quarter.

On the other hand, consumers continued to assess that the labor market is in good shape. The perception of job security, at -26 points, remained practically unchanged. Although expectations regarding the future development of unemployment deteriorated slightly compared with July, the corresponding sub-index came in at 39 points, which was still clearly below its long-term average.