Swiss Economy Expands 0.3% In Q1
Swiss economy grew 0.3 percent on quarter in the first quarter of 2016, following an upwardly revised 0.2 percent expansion in the previous period but slightly below market consensus of a 0.4 percent gain. It was the strongest expansion since the second quarter of 2016, supported by exports and business investment.
Exports of goods increased by 3.9 percent, reversing from a 3.5 percent decline in the previous quarter, mainly boosted by chemicals and pharmaceuticals and by the precision tools, watches and jewellery segment, which had its highest growth in six years. Exports of services also rose 3.2 percent after falling 1 percent in Q4 2016. Meanwhile, imports declined 1.5 percent, following a 0.2 percent increase in the previous period, as purchases of chemical and pharmaceutical products fell, while those of energy, machinery, precision instruments, watshes and jewelry rose.
Investment in equipment and software gained 1.7 percent, rebounding from a 0.5 percent drop in Q4 and investment in construction advanced 0.4 percent after falling 0.3 percent in the previous period.
Meanwhile, household consumption rose 0.1 percent, much slower than a 0.9 percent increase in the previous quarter. While spending on health supported the economy, the residential and energy contributed negatively to the GDP.
Government spending went up 0.4 percent, also weaker than a 0.9 percent rise in the prior quarter.
Year-on-year, the economy grew by 1.1 percent, faster than an upwardly revised 0.7 percent growth in the prior quarter but below market expectations of 1.3 percent.
6/1/2017 10:05:16 AM