Swiss Consumption Indicator Rises In April

(RTTNews) - UBS bank's Switzerland consumption indicator climbed in April signaling an acceleration in private consumer spending.

The consumption indicator rose to 1.76 in April from a revised 1.68 in March, well above its long-term average of 1.50.

UBS said the rise in the indicator was driven by significantly higher business activity in the country's retail sector.

"The rise in the UBS consumption indicator indicates that growth in consumption further increased in the first quarter of this year, buoyed by low interest rates, immigration and a rapidly recovering job market," the bank said.

The UBS consumption 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.

A rise in consumer spending bodes well for the Swiss economy, with private consumption making up nearly 60% of the country's gross domestic product.