Switzerland's consumption index increased significantly in June, reflecting mainly a huge increase in new car registrations following the introduction of the CO2 tax earlier in the month, data from UBS showed Tuesday.
The consumption indicator climbed to 1.60 point in June from 1.02 point in May, which was revised down from 1.05 point. Th increase, the third-largest ever reported, partly explains the introduction of the CO2 tax starting 1 July, which led to a huge increase in new car registrations.
UBS said it expects the domestic economy, especially consumption, will continue to post above-average growth and will at least partly compensate for the possible export losses. The bank expects economic growth of 1.3 percent for the year as a whole.
by RTT Staff Writer
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