UBS released its consumption index for Switzerland on Wednesday. The UBS consumption index increased to 1.66 in January from 1.61 in December. December's figure was revised down from 1.62.

The increase was driven by an improved business sentiment in the retail sector.

The bank noted that the outlook for retail remained subdued.

"The improvement of the UBS Consumption Indicator sends a positive signal for private consumption. However, unemployment could rise in the first half of the year as a delayed response to last year's weaker GDP growth, thereby dampening private consumption," the bank said.

The bank noted that private consumption could rise 1.4% in 2016, driven by the labour market recovery in the second half of the year.