Retail spending in Switzerland increased 0.9% in June from the previous year after falling at an annual pace of 1.4% in the previous month, and the data encourages an improved outlook for the economy as growth prospects improve. The breakdown of the report showed demands for electronic goods jumped 8.1% after being adjusted for the number of shopping days, with spending on household goods rising 6.8% from the previous month, while discretionary spending on clothing and shoes slumped for the second consecutive month in June. Nevertheless, as the Swiss National Bank anticipates economic activity to remain subdued into the following year, the downturn in global trade paired with the rise in unemployment could stoke fears of a double-dip recession, and the central bank may continue to intervene in the currency markets in an effort to stem the downside risks for growth and inflation.
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