Swiss household consumption saw a slight rebound in spending on goods in November 2024 compared to the previous month. According to revised data from the Federal Statistical Office, household consumption expenditure rose by 0.3% in volume terms, after a 0.3% decline in October 2024. This improvement was due to increased purchases of manufactured goods, which rose by 0.9%, as well as a slight increase in food consumption by 0.3%. However, the recovery was not comprehensive, as energy expenditure recorded a further decline of 0.8%.
Manufactured goods: a marked recovery
Among the sectors that saw an improvement, manufactured goods were the most prominent in November 2024. Household consumption of manufactured goods rose by 0.9%, after a 1.3% decline in the previous month. This improvement was mainly due to increased spending on durable goods, which rose by a significant 1.9%. This increase indicates that households are more willing to invest in long-lasting goods, such as new and used cars and motorcycles, which are currently the most popular durable goods purchased.
Durable goods: Continued recovery
In November 2024, consumption of durable goods rebounded strongly by 1.9%, after a slight decline of 0.4% in October 2024. This improvement mainly reflects increased spending on transportation goods, with sales of new and used cars and motorcycles rising significantly. This trend suggests that households are more likely to upgrade their vehicles or purchase new ones due to improved economic conditions or in response to increased transportation demands in the market.
Other manufactured goods: Slight increase
Despite the overall improvement in consumption of manufactured goods, the increase in consumption of “other manufactured goods” was relatively limited. These goods recorded a slight increase of 0.2% in November 2024, after a slight decrease of 0.1% in October 2024.
Clothing and textiles: Continued decline
This limited increase suggests that some other categories of manufactured goods, such as electrical appliances or kitchen appliances, have seen a slight improvement in demand, but this improvement is still below expectations in the current economic environment.
In contrast to other sectors, spending on clothing and textiles continued to decline in November 2024. This category recorded a new decline of 0.7%, after a sharp decline of 5.5% in October 2024. This decline reflects the ongoing challenges facing the fashion sector in Switzerland, where demand for clothing has slowed due to economic pressures and market conditions. The reasons for this decline are mainly lower spending on clothing, but also lower spending on footwear and leather.
The change in consumer behaviour may be due to changes in purchasing habits, as consumers may have chosen to postpone their purchases of clothing or to buy less expensive clothing in the current financial environment.
Food: A new increase
While some sectors saw a decrease in spending, another sector saw an increase in consumption: food. In November 2024, household food consumption rose by 0.3%, following a larger increase of 1.3% in October 2024. This increase was due to higher purchases of agricultural food products, which are essential for everyday life. Food remains one of the sectors less affected by economic fluctuations, with demand remaining strong despite lower spending in other sectors.
Energy: Further decline
Despite the recovery in some sectors, the energy sector continues to face challenges. Household energy expenditure in Switzerland fell by 0.8% in November 2024, following a similar decline of 1.2% in October 2024 and 0.3% in September 2024. This is the third consecutive year that this sector has recorded a decline in spending, indicating a decline in electricity consumption.
Factors influencing the recovery in spending
Part of this decline in energy is due to lower electricity consumption, despite higher gas consumption, which was not sufficient to offset the decline in electricity consumption. These trends may be linked to increased awareness of energy efficiency or increased use of alternative solutions such as renewable energy.
The limited recovery in household consumer spending in November 2024 reflects a combination of economic and social factors. Despite the global economic challenges, Swiss households appear to remain cautious in their spending, with many preferring to save and wait rather than spend on non-essential goods. However, some categories appear to have improved their spending significantly, such as durable goods purchased when the economic situation improves or when there is a real need for modernization.
Government policies, such as subsidies for households or economic stimulus packages that may be provided by the government, have a significant impact on these trends. These policies contribute to boosting consumption in some categories, such as food, while they may discourage spending in other sectors, such as clothing and footwear.
Outlook for household consumption in 2025
Households are expected to continue fluctuating their spending on goods in the coming months. Analysts predict that some sectors will see further improvement as the economy recovers, while others may remain under pressure due to global economic conditions. The energy sector is likely to continue to decline due to changes in electricity consumption, but durable goods and other manufactured goods could see further improvement, especially if the economic situation in Switzerland and the world continues to improve.
Overall, the November 2024 report shows that household consumption continues to grow, but remains uneven across sectors. Policymakers and monetary authorities may need to intervene to achieve a better balance and boost consumption in some affected sectors.
