(Bloomberg) -- Switzerland’s economy rebounded in the third quarter as growth in services made up for a lackluster showing in manufacturing.
Gross domestic product, adjusted for large sports events, increased 0.3% in the three months through September, according to data published on Friday. Revised numbers showed that it had contracted 0.1% in the previous period, rather than stalling as initially reported.
“The international environment remains challenging, with value added in industry stagnating accordingly,” Switzerland’s State Secretariat for Economic Affairs said. “However, the service sector was once again able to provide a support.”
The numbers indicate that Switzerland is managing to withstand weak global momentum that drove the surrounding euro area into contraction. Economists expect the country’s growth to continue in the current quarter.
Still, technology manufacturers have warned that higher borrowing costs at key trade partners are damping their interest in buying Swiss goods, while the franc’s recent appreciation hurts the bottom line of the nation’s international businesses.
“Germany is in a recession and the key US and Chinese markets are only performing weakly,” industry association Swissmem said in November. “In addition, high interest rates worldwide are muting demand for capital goods, which would be accentuated by any further rate hikes.”
The SNB is expected to hold rates when it meets later this month.
--With assistance from Joel Rinneby and Kristian Siedenburg.
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