Zurich, 25 November 2015 - The 0.04 point rise in the UBS Consumption Indicator in October stems from a slight improvement in consumer confidence and expected business activity in the retail sector. Despite consumers' gloomy labor market expectations, this was outweighed slightly by the prospect of an economic upturn. At the same time, business activity in the retail sector seems to have improved recently. Turnover in September rose slightly by 0.1% in real terms and adjusted for holidays, according to the Federal Statistical Office.

The index for business conditions in the retail trade, compiled by the KOF Swiss Economic Institute at the ETH Zurich, remains well below the long-term average. Although import prices have fallen considerably due to the strong franc, most expenses are incurred in local currency. Shopping tourism remains a source of concern for the retail sector. As shopping tourism shows up as imports, it is driving out a portion of domestic consumer spending, which accounts for more than half of Switzerland's GDP.

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