ZEW-CS Financial Market Test Switzerland - Economic expectations brighten up slightly in January

The ZEW-CS-Indicator of Economic Sentiment for Switzerland edged up in January 2010 by 2.2 points, reaching the 56.2 mark. The current rise outweighs the indicator’s slight decline noted in December 2009. This reveals the current Financial Market Test Switzerland, carried out monthly by the Centre for European Economic Research (ZEW) in cooperation with Credit Suisse (CS).

Furthermore, the assessment of the current economic situation brightened. The corresponding indicator climbs 15.8 points to the minus 27.1 level in January. The lion’s share (75.0 percent) of financial market experts surveyed still sees no change in short-term interest rates in the coming six months. Inflation expectations also increased in January. 48.9 percent (up 12.2 percentage points) of the survey participants expect the Swiss inflation rate to rise over the next six months. Sentiment among the financial market specialists regarding the Swiss stock market has brightened up further, with 70.8 percent (up 9.6 percentage points) presuming that the Swiss Market Index (SMI) will gain terrain in the next six months.

The survey process and methodology

The ZEW has conducted a similar monthly survey for Germany since 1991. The aim of the Swiss survey is to develop indicators both for Switzerland's general economic climate as well as for the Swiss services sector.

Specifically, survey participants are asked to give their medium-term expectations for important international financial markets as regards the development of the economy, the inflation rate, short- and longer-term interest rates, equity prices and exchange rates. In addition, the financial experts are also asked to assess the earnings situation of companies in the following Swiss services sectors: banks, insurance, consumer/retail, telecoms and services as a whole.

The results represent the net difference between the percentage of positive and negative responses. Figures in parentheses show the changes for each indicator compared to the previous month.

For further information please contact

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

Fabian Heller (Credit Suisse), Phone: +41/44/3329061, E-mail: fabian.heller@credit-suisse.com