BRUSSELS
(dpa-AFX) - Swiss consumer sentiment improved towards the end of last year and private consumption is likely to continue trending upward, the investment bank
UBS said Wednesday.
The UBS Consumption Indicator rose to 1.62 points in December from 1.55 in the previous month, which was revised from 1.66.
"Consumer sentiment will likely start the year strong despite a seasonal increase in the unemployment rate in December," UBS said.
"As low interest rates provide little incentive to save, people tend to consume more."
Consumer prices are still falling, mainly due to lower energy prices and crude oil. Consumer spending should receive a boost as lower energy expenses leave more disposable income available.
Survey data from the
Zurich
-based
KOF Swiss Economic Institute showed that retailers were looking forward to weaker business situation in December on the belief that consumers were increasingly shopping abroad and spending less due to economic conditions.
However, initial reports from retailers indicate that Christmas sales were better than anticipated, the UBS said.
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Source: Equities.com News
(January 26, 2016 - 4:53 PM EST)
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