Sep 04, 2014
Switzerland's economy stagnated in the second quarter, data released Tuesday showed.
Moderate growth in consumer spending failed to offset the drag on machinery exports from sluggish demand in European markets.
Gross domestic product in the three months through June was unchanged from the previous quarter and increased 0.6% year over year, the State Secretariat for Economic Affairs said. This was below economists' expectations of a quarterly gain of 0.6% and annual expansion of 1.8%.
In the first quarter the economy grew 0.5% quarter over quarter and 2.1% year over year, the economics department said.
Swiss second-quarter export growth slowed to 0.6% from 2.3% in the three months through March with more exports of jewelry failing to offset a decline in industrial goods, it said.
The slowing in the second quarter is largely in line with the latest manufacturing industry index released Monday which fell for the first month in three in August.
The economics department--which currently expects Swiss GDP to grow 2.0% this year and 2.6% in 2015--will update its GDP, inflation and unemployment forecasts Oct. 16. The Swiss central bank predicts the economy to expand at about 2% this year and will update its projection when it holds its quarterly policy review on Sept. 18.
Source: MarketWatch