Slight decline in Swiss foreign trade in May
Published: Thursday, Jun 20th 2024, 11:40
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Swiss foreign trade weakened slightly in May. Both exports in general and watch exports, which are particularly important for Switzerland, recorded declines. According to experts, however, the long-term upward trend remains intact.
Exports totaled 22.81 billion Swiss francs in May, as reported by the Federal Office for Customs and Border Security (FOCBS) on Thursday. This represents a seasonally adjusted fall of 1.6 percent compared to the previous month.
In real terms, i.e. price-adjusted, this results in a decline of 3.5%. However, this decline follows an exceptionally strong increase in April. According to the experts at the BAZG, the longer-term upward trend of recent months thus remained intact.
Chemicals and pharmaceuticals are a burden
Chemical and pharmaceutical products (-3.1%) were the main drag on exports in the month under review. This product group continued to account for a good 54% of total exports.
Exports of machinery and electronics (-1.4%) and precision instruments (-0.4%) also declined slightly. The metal industry, for example, performed better (+2.6%).
From a regional perspective, all major economic areas saw fewer goods leaving Switzerland in terms of value. At -2.3%, the decline in Asia was somewhat greater than in Europe and North America (-0.8% each).
Watch exports continue to weaken
When it comes to export figures, particular attention is paid to the watch industry. This industry once again suffered a decline in May. Exports fell by 2.2% year-on-year to CHF 2.29 billion, according to a joint announcement by the FOCA and the Federation of the Swiss Watch Industry. This continued the negative trend of the first four months of the year.
The USA, the largest sales market, remained stable, with a minimal decline in exports of 0.5% to CHF 359.2 million. In Japan (+5.8%) and France (+18%), sales figures for Rolex, Omega and Co. even increased.
Weak business in China
In contrast, business in China remained weak: exports to mainland China fell by 18% and to Hong Kong by as much as 22.7%.
In terms of price categories, expensive watches remained in demand. Timepieces with an export price of over 3,000 Swiss francs achieved a 0.7 percent increase in value. Watches worth between 200 and 500 francs recorded an increase of 3.9 percent.
Exports fell in the other segments, with the decline in the price category from 500 to 3,000 francs (-16%) being more pronounced than in the cheapest segment below 200 francs (-1.2%).
Watch exports exceed expectations
According to analysts at ZKB, watch exports in May were slightly above expectations despite the decline. A single month should not be overestimated.
The decline in May confirms the negative trend that has persisted since January. For the second half of the year, however, ZKB is expecting slight growth in the sector again due to the lower prior-year basis.
©Keystone/SDA
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