Watch Exports Return to Growth in August — in Value, Not Units
PARIS — There was a silver lining for Swiss watchmakers in August as export figures showed signs of a rebound.
Exports were up 6.9 percent in value, standing at 1.95 billion Swiss francs, or $2.31 billion, while falling in volume, with 125,000 fewer watches leaving the country, the Federation of the Swiss Watch Industry said Thursday.
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Despite the slight improvement in July and August, the total for the first eight months of the year contracted 1.4 percent against last year’s figures, standing at 1.7 billion Swiss francs. The industry body expressed a negative outlook for the rest of the year.
“Firms in the sector are lamenting the lack of visibility in the medium term, which is prompting them to be more cautious going forward or even, in some cases, cutting back,” it said.
On Tuesday, the FHS and the Convention Patronale de l’Industrie Horlogère Suisse, a body representing employers, released a joint statement calling for support measures, citing concerns that included the ongoing strength of the Swiss franc and weaker exports to Greater China.
Exports to the region continued to fall, albeit at a slower rate. Exports to China were down 5.9 percent, allowing the country to claw back its second place. Hong Kong, on the other hand, fell to fifth place after its 11.1 percent slump for August.
The industry body said forecasts for both markets continued to be “very negative for the next few months.”
Most markets saw growth, particularly in the top 10. The U.S., Japan and Singapore were particularly strong with respective growth of 7.6, 14.4 and 9.3 percent. In eighth place by market size, the United Arab Emirates leaped 26.9 percent while Italy and South Korea also saw double-digit increases.
The FHS said the U.K., Germany and France did “less well,” with low-single-digit or near-flat increases.
Luxury watches, priced above 3,000 Swiss francs at export price, were the only segment to grow in August, with exports rising 14.9 percent in value and 4.7 percent in volume. At lower price points, the month saw value and volume decrease by 14.4 and 11.3 percent, respectively.
Precious metals timepieces were the largest contributor to growth this month, although the 21.2 percent increase in value came with a 3.7 percent rise in units. Gold-steel bimetallic items also grew in value and volume, respectively 12.7 and 2.6 percent. Gold prices have been soaring in 2024, hitting a new record high in May, while prices of platinum and silver have also risen.