(RTTNews) - Private consumption in Switzerland edged up in September although there were still no signs of a sustainable recovery in consumer spending, UBS bank said in a report Tuesday.

The UBS private consumption indicator rose to 0.63 in September from 0.62 recorded in August, well below its long-term average of 1.5. The index is calculated by taking five parameters into account namely new car sales, activity in the retail sector, the number of hotel stays by Swiss residents, the consumer confidence index and credit card transactions made via UBS points of sale.

“There continues to be no sign of a sustainable recovery in private consumption in Switzerland,” UBS bank said in a statement. “The current level hints only at a modest expansion in private consumption compared to last year.” Among the sub-indicators, new car sales and improved retail activity helped stabilize private consumption in September.

Despite the expected economic recovery, UBS expects private consumption to remain weak in coming months. “The expected rise in unemployment and the associated job uncertainty are likely to put a damper on consumer behavior,” the bank said. “A recovery of private consumption is not foreseen until the middle of next year.”

UBS forecasts consumer spending to rise 0.9% in 2009, but expects the pace to slow to 0.2% in 2010. Contributing about 57% to the gross domestic product, private consumption is a decisive indicator of Swiss economic health. UBS economists sees a GDP contraction of 1.5% in 2009. They expect the economy to expand 1.7% in 2010 and 2.1% in 2011.

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

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