According to the Federal Statistics Office, retail sales in Switzerland surged for the month of November.  The higher figure continues to buoy the already surfacing conviction that the Swiss economy is adapting to an appreciated currency.  It also lowers the need for central bank consideration of raising the franc exchange rate ceiling.  Unfortunately, gains in the Swiss franc were tepid – and overshadowed – following the resignation of Swiss National Bank President Hildebrand this morning <read the alert here>.  The neutral economy’s currency is now trading at 1.2134, only slightly higher than the week’s open at 1.2149 against the Euro.  Countering the US dollar, the currency is now at 0.9526.

Retail sales growth was a healthy 0.3% month over month for the Swiss economy in the eleventh month of 2011.  The overall figure was boosted by a 2.2% growth in the sales of non-food items.  The subcomponent gain compounded on an already solid 1% rise in the sale of food and beverages.  As a result, retail sales growth expanded at a 1.8% annualized pace in November, trumping forecasted gains of a 0.5% rise – and October’s 0.1% advance.

Monthly retail sector gains may help further boost economic growth in the Swiss economy, as market forecasts have turned lower in regards to annualized gross domestic product recently.  Earlier in the fourth quarter SNB officials downgraded their growth forecasts for the year, estimating a 1.3% pace of growth - compared to earlier 3% estimates.  However, with the potential for consumption to rise in the final months of the year, growth may have accelerated above central bank forecasts – a good thing for the domestic currency.