Rising prices are scary
Consumers are more pessimistic than ever
The mood of Swiss consumers has deteriorated further since the last quarter. Above all, the assessment of one’s own financial situation has fallen to a new historical low due to rising inflation.
Rising prices are worrying the Swiss.
The consumer sentiment index, which is surveyed quarterly, fell from -41.7 to -46.6 points in the fourth quarter. It has thus reached its lowest level since the survey began in 1972, as the State Secretariat for Economic Affairs (Seco) announced on Tuesday.
The reasons: On the one hand, consumers’ expectations for general economic development over the next twelve months have continued to deteriorate. On the other hand, the households would again assess their financial situation significantly more negatively than in the previous quarter, writes the Seco. This was only rated as bad once in the early 1990s.
Prices have continued to rise
According to Seco, the development of prices may have contributed significantly to the negative assessment of their own financial situation. As is well known, inflation rose above 3 percent in June for the first time in many years and has remained above this mark ever since. For individual product categories, the inflation rates are even significantly higher.
In contrast, the respondents continue to assume that the labor market will be in good shape. According to the Seco, job security is rated practically unchanged compared to the last survey in July. And the further development of the unemployment figures is assessed somewhat less optimistically, but the corresponding sub-index is still well below the long-term average.
Surveyed four times a year
The survey is carried out with over 1000 people in the months of January, April, July and October. Subjective assessments and expectations are collected, for example with regard to the general economic situation, the financial situation, the development of prices, job security and more. A total of eleven questions are asked. (pbe/SDA)