ZEW-CS Financial Market Test Switzerland: Expectations Slightly Diminished

Economic expectations for Switzerland turned out to be somewhat more moderate in January 2011, with the relevant ZEW-CS-Indicator edging down by 5.9 points to the minus 18.4 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 picture continued to follow its upward trend, climbing by 8.6 points to a high plateau of 71.1 points. This value was reached at the beginning of 2008 for the last time.

Inflation expectations also increased noticeably in January and, in the interim, 42.1 percent of the respondents forecast a pick-up in inflation rates on a six-month horizon. Expectations regarding the short-term interest rates have advanced again. The corresponding indicator jumped from 23.1 points in December to the 35.1 level in January.

For further information please contact

Dr. Gunnar Lang (ZEW), Phone +49 (0)621/1235-372, E-mail lang@zew.de

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