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Swiss UBS Consumption Indicator Drops In May

6/26/2012 2:18 AM ET

Switzerland's consumption index dropped in May, reflecting a drop in business activity in the retail sector, data from UBS showed Tuesday.

The consumption indicator fell to 1.05 points in May from 1.37 in April. Nonetheless, UBS expects consumption to be the economy's most important support this year.

The strong franc, falling consumer prices and high immigration can lead to the consumption indicator underestimating actual consumption development, UBS said.

UBS has recently raised its forecasts for Swiss economic growth to 1.3 percent this year. The decline in the indicator in May does not alter the assessment of the Swiss economy, it said.

by RTT Staff Writer

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