The Swiss economy contracted less than expected, with the growth rate falling 0.3 percent from the first quarter amid expectations for a 1.0% drop, and the encourages an improved outlook for the region as the government takes unprecedented steps to stimulate the ailing economy. The break down of the report showed business investments increased 1.1 percent from the first three months of the year, with household consumption rising 0.6% during the quarter, while exports slipped 2.7% after tumbling 6.4% in the first quarter. Moreover, manufacturing activity in Switzerland expanded for the first time in a year, with the SVME index rising to 50.2 in August from 44.3 in July, topping forecasts for an increase to 46.9. The data encourages an improved outlook for the export-driven economy as foreign demands fall at a slower pace however, as the Swiss National Bank anticipates economic activity to remain subdued going into the following year, the central bank is expected to remain vigilant and decisive in combating the downside risks for growth and inflation, and may continue to intervene in the currency market in order to steer the nation out of recession.
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