Swiss watch exports post first monthly decline in two years
A non-finished export candidate.
Keystone/patrick Huerlimann
Swiss watch exports declined slightly in July, the first monthly drop in more than two years, as demand for pricey timepieces begins to slow amid higher prices and economic pressures.
This content was published on
2 minutes
Bloomberg/dos
Português
pt
Exportações de relógios suíços registram primeira queda mensal em dois anos
Shipments fell by 0.9% last month to CHF2.2 billion ($2.5 billion) with China driving the downturn, the Federation of the Swiss Watch Industry said on Tuesday.
Exports to China, the second biggest market behind the US, fell 16.6% following a surge last year. Singapore, another key market, suffered a 7.9% drop compared to a strong rise a year ago.
The decline suggests booming demand for expensive Swiss timepieces may be starting to cool after climbing to a record above CHF24 billion in 2022. Brands from Omega to Patek Philippe and Rolex have raised prices to offset higher input costs, boosting sales and profits amid the upswing.
Zuirch cantonal bank analyst Patrik Schwendimann said the monthly drop in exports was unexpected and could negatively impact shares of Richemont and Swatch Group AG.
“However, as usual, a single month of watch exports should not be overestimated, as it is not a sales figure,” he said, predicting export growth to return in August and September.
The last time Swiss watch exports suffered a monthly drop was in January 2021.
The federation said the slight downturn “will not have a significant impact on the general trend or forecasts for 2023,” suggesting the industry can still hit a new record again this year.
Exports declined across all price segments with the exception of watches priced above CHF3,000, which gained 2.2% by value.
Shipments to the US, which overtook China as the biggest market in 2021, increased by 5.2% in July, indicating demand is still growing in the largest market for Swiss timepieces.
Popular Stories
More
Foreign affairs
European nations snub Swiss-made weapons over Ukraine restrictions
This content was published on
The man who injured three children on Tuesday has been detained in pre-trial custody after a request by the public prosecutor’s office.
UN and global ski federation sign climate change agreement
This content was published on
The UN and the International Ski and Snowboard Federation want to draw attention to the effects of climate change on winter sports.
Swiss initiative wants to boost security of medical supplies
This content was published on
A people’s initiative calling for Switzerland to boost the development, production and storage of drugs has been submitted in Bern.
Public prosecutor wants custody for Zurich knife attacker
This content was published on
The Zurich public prosecutor's office has requested that the man who attacked and injured three children with a knife in Zurich on Tuesday be remanded in custody.
This content was published on
Swiss judges want to dissolve the traditional link between parties and court members, including mandatory contributions to a political party.
A full-time workload increases risk of cancer, says Swiss study
This content was published on
Full-time workers have an increased risk of cancer, say researchers from the University of Fribourg. The reasons for this are unclear.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.