UPDATE 1-Swiss economy pulls out of recession in Q3

* First time Swiss GDP grows since Q2 2008

* Private consumption robust despite rising unemployment

* Nov PMI data due at 0830 GMT

(Updates with analyst comment, franc reaction)

By Catherine Bosley and Emma Thomasson

ZURICH, Dec 1 (Reuters) - The Swiss economy pulled out of recession in the third quarter, growing by 0.3 percent compared to the previous three months, slightly better than average analyst forecasts, data showed on Tuesday.

It was the first time gross domestic product grew since the second quarter of 2008 and came after a contraction of 0.3 percent the previous quarter, the State Secretariat for Economic Affairs (SECO) said.

Economists surveyed by Reuters had expected a quarter-on-quarter median increase of 0.2 percent.

"The results was rather robust and for the first time in five quarters we have positive growth indications, which is encouraging. We expect this will continue," said Fabian Heller, an economist with Credit Suisse.

Market participants were also looking towards the November Purchasing Managers' Index, due at 0830 GMT CHPMI=ECI, for further indicators that economic recovery was setting in.

The Swiss franc rose against the dollar CHF= to a high of 1.0028 per dollar after the GDP data was released. It also rose against the euro EURCHF=, up past 1.507 per euro.

Year-on-year, the economy contracted 1.3 percent, also slightly better than average analyst forecasts for a fall of 1.5 percent, although the second-quarter contraction was revised down to 2.4 percent from a previously-reported 2 percent.

Despite rising unemployment, the SECO said private consumption was still robust, growing at 0.6 percent in the quarter, while exports also recovered and the financial services sector grew again after six quarters of contraction.

SNB OUTLOOK

Despite mounting evidence the economy is on the mend, the Swiss National Bank is expected to maintain its expansive monetary policy when it holds its next meeting on Dec. 10, although it might revise up its growth and inflation forecasts.

"We think there might well be some more confident comments from the SNB on Dec. 10," Heller said. "However we still think there is no urgency to tighten in terms of interest rates any times soon."

The SNB has also been buying corporate debt to boost liquidity and intervening in the foreign exchange market to prevent the franc from appreciating. Heller said the central bank might adjust these measures.

"There are some other measures we expect to be unwound over the coming months -- some of the unconventional measures," he said.

The SNB currently forecasts a decline in gross domestic product of 1.5 to 2.0 percent this year, and its Chairman Jean-Pierre Roth said last month 2010 would be another difficult year for the country. [ID:nLI671948]

But Roth said recently that current policy conditions will have to be corrected soon to avoid medium-term inflationary pressures as the economy improves. [ID:nGEE5AN2RB]

The OECD, meanwhile, sees the Swiss economy shrinking 1.9 percent in 2009 but returning to growth at the end of the year, growing 0.9 percent in 2010 and 1.9 percent in 2011.

Switzerland's economy slipped into its worst recession in more than three decades in mid-2008, but it has suffered less of a slowdown than some other European countries thanks to resilient consumption. ((Zurich newsroom +41.58.306.7336; fax +41.44.251.0476; zurich.newsroom@reuters.com))