Retail spending in Switzerland increased at an annual rate of 1.0% in July after rising 0.9% in the previous month, and the data encourages an improved outlook for the region as policy makers take unprecedented steps to steer the economy out of recession. The breakdown of the report showed sales of electronic goods/computers jumped 13.0% after adjusting for the number of shopping days, with discretionary spending on food and beverages increased 2.0%, while demands for clothing and shoes slumped 2.9% from the previous year. As households face a weakening labor market paired with tightening credit conditions, consumers may scale back on spending as the Swiss National Bank anticipates economic activity to remain subdued throughout the following year, and as a result, the central bank is widely expected to hold the benchmark interest rate a 0.25% this week as the outlook for growth and inflation remains weak.