(RTTNews) - Private consumption in Switzerland is likely to weaken in the coming months, the UBS consumption indicator suggested Tuesday.

The consumption indicator fell to 0.66 in August from 0.75 recorded in July. The indicator thus continued the downward trend that began a year ago. The UBS consumption indicator has now registered below its long-term average of 1.50 for eleven months now.

“The economy is exerting pressure on consumer spending,” the UBS bank said in a statement. It forecasts consumer spending to rise 0.8% in 2009 an by 0.1% in 2010.

Among the sub indicators of the consumption indicator, the flagging consumer confidence and the continued decline in car sales and hotel overnight stays contributed to the renewed decline.

However, a positive reading of the consumption indicator suggests a modest increase in Swiss private consumption in August. However, the environment remains difficult, the bank said.

“The rise in unemployment until the end of the year, both as a result of economic developments and seasonal, may well further dampen consumer spending,” the UBS said.

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Posted in Categories: Economy, Releases, Switzerland, USA.

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