ZEW-CS Financial Market Test Switzerland - Pessimism Still Prevails

According to the latest ZEW-CS-Indicator, economic expectations for Switzerland have diminished for the fourth month in a row. In August, the indicator plunged by 12.5 points to the minus 71.4-point mark, thus reaching an extraordinarily low level. 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.

The indicator for the assessment of the current economic situation also recorded a sharp drop, falling by 18.6 points to the 34.3-point threshold. As in the previous month the respective balances for inflation as well as interest rate expectations registered much lower readings in August once more. Merely 14.3 per cent of the financial market experts surveyed predict that inflation rates will advance in the coming six months. None of the experts expects an interest rate hike in the same timeframe. Concerning the exchange rate 64.7 per cent of analysts anticipate that the Swiss franc will lose terrain versus the euro in the coming half-year.

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