The consumer sentiment index (now at -47 points) fell again compared with the July survey, reaching its lowest level since the survey began in 1972.

For one thing, consumers' expectations on how the general economic situation is expected to develop over the next 12 months have become even gloomier. The corresponding sub-index is now at -57 points, far below the long-term average (-9 points).

In addition, households have become even more pessimistic about their own financial situation than in the previous quarter. The sub-index on the past financial situation (at -40 points) fell to an historic low. The perception has not been as bad since the early 1990s. The sub-index on the expected financial situation (at -47 points) also fell to a new low.

Consumers’ negative assessment of their own financial situation is likely to be largely driven by price developments. The past price development sub-index (at 131 points) continued to rise. And although the expected price development sub-index (at 105 points) declined slightly again, it still remains at a very high level. As a result, the consumers surveyed remain cautious about making large purchases; the corresponding sub-index was well below the historical average, at -42 points.

On the other hand, consumers continue to assume that the labour market is in good shape: the perception of job security (at -26 points) remains practically unchanged. Though the expectations regarding the future development of unemployment figures have deteriorated slightly compared with July, the corresponding sub-index (39 points) is still clearly below its long-term average.

For your information
From 2023 on, SECO will publish on its website only the data on consumer sentiment, and renounce its quarterly press releases on this subject. The data can be found at www.seco.admin.ch/consumer-confidence.

Consumer sentiment continues to dampen