Swiss Q3 GDP Growth Strongest in Nearly 3 Years
The Swiss economy advanced 0.6 percent on quarter in the three months to September of 2017, following an upwardly revised 0.4 percent growth in the previous period and beating market expectations of 0.5 percent. It was the strongest pace of expansion since the fourth quarter of 2014, mainly supported by consumption, equipment investment and net exports.
Household consumption rose 0.4 percent, faster than a 0.2 percent increase in the previous quarter, boosted by higher spending on healthcare, housing and energy as well as leisure time and culture. Also, government spending increased by 0.5 percent, following a 0.3 percent rise in the prior quarter.
Investment in equipment expanded by 0.9 percent, the same as in Q2, particularly in machinery and in IT. On the other hand, investment in construction declined by 0.1 percent, after growing 0.6 percent in the previous period.
Net foreign demand contributed positively, as exports of goods rose 2.1 percent, much stronger than a 0.7 percent rise in the previous quarter, with sales of chemical and pharmaceutical products, energy, machinery, equipment and electronics as well as merchanting providing a significant boost to growth. In contrast, exports of services declined by 0.4 percent, after a 0.5 percent drop in the June quarter.
Imports dropped 1.6 percent after a 5 percent jump in the previous period, due to declining imports of vehicles and chemical and pharmaceutical products. Imports of services decreased 0.7 percent, following a 2.2 percent gain in Q2, including in the tourism sector.
Year-on-year, the economy grew 1.2 percent, following an upwardly revised 0.5 percent expansion in the previous period and beating market expectations of 0.7 percent.
11/30/2017 10:31:52 AM