Switzerland: Economic growth slows in the third quarter
GDP reading: GDP growth ebbed to 0.4% on a seasonally adjusted quarter on quarter basis in the third quarter from 0.6% in the second quarter. Adjusted for sporting events—which often disrupt Swiss GDP due to the global sporting organizations headquartered in the country—growth was a weaker 0.2%.
Drivers: Household spending accelerated moderately to 0.5% seasonally-adjusted quarter-on-quarter in the third quarter (Q2: +0.4% s.a. qoq). Government consumption, meanwhile, picked up to a 0.5% expansion in Q3 (Q2: +0.3% s.a. qoq). Fixed investment contracted 0.6% in Q3, marking the worst reading since Q4 2023 (Q2: -0.5% s.a. qoq). On the external front, exports of goods and services slid at a softer pace of 3.2% in Q3 (Q2: -3.6% s.a. qoq). In addition, imports of goods and services declined at a milder rate of 1.1% in Q3 (Q2: -8.7% s.a. qoq).
GDP outlook: Our Consensus is for another modest GDP expansion in Q4, with private spending to be the key driver.