Consumers worry about their financial situation. But maybe it’s an overreaction.
The Swiss want to be more cautious when making larger purchases. Greater caution could also be seen in the future for smaller items such as spending on clothing.
Such a decline has not been seen since the beginning of the Corona crisis: consumer sentiment in Switzerland has deteriorated massively. In the survey, which the federal economic researchers conduct quarterly, a lot came together in April that had accumulated in the weeks before.
For one thing, the outbreak of war in Ukraine weighed heavily on the interviewees. They are now expecting a much worse economic situation than was the case at the beginning of the year.
Above all, however, inflation seems to have gotten into the minds of the Swiss. The expectations of those surveyed with regard to their future financial situation have developed extremely negatively in the April survey.
The decline here is even greater than at the beginning of the Corona crisis. The Swiss obviously fear for their money and want to be more cautious when it comes to larger purchases.
The slump in consumer sentiment is certainly not a good sign. But one should not overestimate a single indicator either.
Amidst the impact of rising energy prices, the view seems to have recently become more firmly entrenched that inflation will become a serious problem in the coming months. But viewed objectively, inflation in Switzerland is still relatively low at just over 2 percent – in contrast to many EU countries.
In addition, the economic situation is better than the survey suggests. After a setback in March, the economic prospects have recently improved again according to various indicators. The economic recovery from the corona pandemic is progressing. Consumers also notice some of this: In the survey, they are happy about the very good situation on the labor market.