* Swiss trade surplus widens to 2.5 bln francs
* Swiss exports down 16 percent, imports drop 10 percent
* Exports of watches fall nearly 23 percent
ZURICH, Nov 19 (Reuters) - Swiss exports fell to most regions in October versus a year ago but rose a touch compared with September, data showed on Thursday, indicating that the pace of Swiss economic decline was beginning to taper off.
Exports were down 16 percent in real terms when compared with last year, while imports were 10 percent lower, the Federal Customs Office said. Exports had posted a similar percentage drop year-on-year last month.
"They look solid. From a growth perspective it's also favourable that we've seen an increase in the surplus. What we're coping with right now is a very unfavourable base effect from the end of last year," said UBS economist Reto Huenerwadel. "There seems to be some stabilisation."
The Swiss National Bank cautioned recently 2010 will be a difficult year for the Swiss economy and it will take much longer to exit this recession than previous ones.
Swiss exports posted a 0.1 percent increase on the month in October when adjusted for price effects and seasonal swings.
The nominal trade surplus widened to 2.463 billion Swiss francs ($2.4 billion) in October, up from 1.9 billion francs in September.
The chemical industry was the only export sector to record growth, and the key watch-making industry posted a 23 percent fall in exports.
The SNB pledged to stem an appreciation of the franc against the euro -- which hampers Swiss exporters -- as part of its drastic measures launched in March to fight deflation and the worst recession in decades. These measures include rock-bottom rates and purchases of corporate bonds.
Analysts say the risk of intervention rises at anything under 1.51 francs per euro.
SNB board member Thomas Jordan indicated in early July that the SNB was ready to print and sell as many francs as needed because interventions were key to its "massive" quantitative easing.
At its next meeting on Dec. 10, the SNB is widely seen as sticking to its policy of maintaining interest rates at effectively zero.
Huenerwadel said the trade data was in line with that expectation. "By now everybody's kind of getting increasingly upbeat about the trade sector so I think this is largely factored in."
(Reporting by Catherine Bosley; Editing by Ruth Pitchford) ($1=1.009 Swiss Franc)