Swiss Watches Bounce in August, but Outlook is Bleak
September 25, 24
(IDEX Online) - Exports of Swiss watches increased again in August, but the outlook for the rest of the year remains negative, according to the Federation of the Swiss Watch Industry Exports (FHS).
Total foreign sales during the month were up 6.9 per cent year on year to CHF 17.1bn ($20.2bn). That's a bigger rise than the 1.6 per cent in July.
But the trend so far this year remains negative (down 1.4% so far), as is the outlook for the rest of 2024.
"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," FHS said its monthly update.
Watch exports to China (-5.9 per cent) and Hong Kong (-11.1 per cent) continued to fall, but less significantly than in previous months.
"Nonetheless, the forecasts for both these markets remain very negative for the next few months," FHS said.
Swiss watchmakers and suppliers of tools, machinery and components have been putting staff on short-time working and seeking government help as the downturn impacts their businesses.
Girard-Perregaux and Ulysse Nardin, which were sold off earlier this year by the Kering Group, said earlier this month that they'd cut the hours for 15 per cent of their workforces.