A survey recently undertaken by Swiss banking group, Credit Suisse, in conjunction with the Centre for European Economic Research (ZEW) has shown that there is increased optimism this month amongst the business community and the wider population with regard to the future of the Swiss economy.

According to the Financial Market Test Switzerland poll, economic expectations brightened up again somewhat in August after a dip during June and July, with the Credit Suisse ZEW indicator relating to such expectations gaining 6.9 points, bringing it to the 9.1 mark. This translated to one quarter of respondents (+7.2%) now predicting that economic prospects will improve over the coming six months. At the same time, the share of experts who forecast a weaker economic trend ahead remained nearly unchanged at 15.9% (+0.3%), while 59.1% revealed that their economic outlook was unchanged.

The assessment of the prevailing economic climate again painted a slightly more optimistic picture than that seen in July, according to Credit Suisse, with the relevant balance picking up 5.1 points, bringing it to the 27.3 level.

Inflation expectations remained very low in August, with the share of participants anticipating that prices will decline in the coming six months increasing by 7 percentage points to 15.9%. In contrast, 18.2% (+2.6%) of the respondents expressed the belief that inflation will rise within the same timeframe, while the majority of specialists think that inflation rates are likely to hold steady at the current low levels.

The situation has also brightened in recent months for SMEs with regard to obtaining financing as a result of a new venture capital initiative launched earlier this year by Credit Suisse.

SVC-Ltd for Risk Capital for SMEs is a new subsidiary company established by the banking group (in partnership with the Swiss Venture Club) that will invest in both start-ups and existing firms seeking to expand, in a variety of different ways.

According to the CEO of the new venture, Johannes Suter, the CHF100mn (approx USD96mn) is expected to be fully invested by the end of 2013.

He explained, in an interview in the national trade media, that:

"Our small team will scrutinize an estimated 1,000 to 1,500 investment requests, about ten percent of which will be passed on to the Investment Committee. Rather than simply nodding them through, it will undertake a further critical examination of the applications. 60 to 80 investments – generally speaking up to two million Swiss francs each – will ultimately be made."