Switzerland's economy grew by a robust and better-than-expected 0.5 per cent in the second quarter, data showed on Tuesday, driven by private consumption and spending on machinery, Reuters reported.
The improving economy means the Swiss National Bank is even more unlikely than before to change policy at its next meeting on September 19. Policymakers meet then for an update on the 1.20 per euro cap on the Swiss franc and to set the three-month LIBOR rate.
"There is no reason for the Swiss National Bank to act at the moment. For the SNB, the housing market and their macro-prudential instruments for cooling lending are at the fore," said Alessandro Bee at J. Safra Sarasin.
Analysts polled by Reuters had forecast quarterly growth of 0.3 per cent. First quarter growth of 0.6 per cent had also exceeded expectations.
Year-on-year, second quarter gross domestic product rose 2.5 per cent, the State Secretariat for Economics said, beating forecasts for 1.7 per centin a Reuters poll.
It revised up first quarter annual growth to 1.2 per cent from 1.1 per cent.
Tuesday's figures add to a run of recent upbeat economic data.
Private consumption, buoyed by low unemployment, has helped drive Swiss growth even as the debt crisis in the euro zone — Switzerland's largest trading partner — has sapped demand for exports.
Overseas sales of goods excluding precious metals shrank 0.9 per cent in the second quarter, as exports of watches, chemicals and machinery dwindled.
Swiss exports also declined in July as appetite for Swiss goods in Europe remained weak.
However, recent data from the euro currency bloc, including business sentiment and private sector growth in Germany, has brightened.
