ZEW-CS Financial Market Test Switzerland - Economic Expectations Improve

After the ZEW-CS Indicator declined for five consecutive months economic expectations for Switzerland have currently retreated from the decreases. In October 2011, the ZEW-CS-Indicator improved by 21.3 points to the minus 54.4-point mark. The ZEW-CS Indicator is calculated monthly by the Centre for European Economic Research (ZEW) in cooperation with Credit Suisse (CS). The indicator reflects the expectations of the surveyed financial market experts regarding the economic development in Switzerland on a six-month time horizon.

In contrast, the indicator for the assessment of the current economic situation in Switzerland decreased the fourth month in a row in October, although at decelerated speed.  The respective index dropped by 7.5 points to the 11.4-point threshold.

According to the financial market experts’ assessment inflation seems to even out at the current level in the next six months. In October, the respective balance reached a nearly neutral value of 3.1 points. Even broader consensus persists concerning interest rate expectations. 88.3 per cent of the surveyed experts see interest rates to remain at the current low levels. As in the previous month the respective balance remains at precisely the zero-point threshold.  34.3 per cent of analysts anticipate that the Swiss franc will lose terrain versus the euro during the next six months.

For further information please contact

Lena Jaroszek (ZEW), Phone +49 621/1235-380, E-mail jaroszek@zew.de

Fabian Heller (CS), Phone +41 44 332 90 61, E-mail fabian.heller@credit-suisse.com