Swiss watch exports drop 15.3 pct in Nov

Published 12/18/2008, 02:45 AM
Updated 12/18/2008, 02:50 AM

ZURICH, Dec 18 (Reuters) - Exports from Switzerland's key watch making industry slumped 15.3 percent in November to 1.52 billion Swiss francs ($1.35 billion) in the first monthly decline since March 2005, data showed on Thursday.

"This decline clearly illustrates the curb on growth suffered by the industry as a result of the world economic climate," the Federation of the Swiss Watch Industry said in a statement, adding November was usually the year's best month.

"Most markets registered double-digit declines," it said, but added that France and Germany still saw increases as did the United Arab Emirates.

The fall compared with a 0.1 percent rise in October to 1.686 billion francs.

The shares of leading watchmakers Swatch Group and Richemont are sensitive to the data.

The federation said exports of wristwatches fell by 15.1 percent in value terms in November, while half a million fewer watches left Switzerland in the month.

It said all price segments saw declines, with exports of watches worth between 500 and 3,000 francs hardest hit, contracting 30 percent, while watches costing more than 3,000 francs only fell by 5.4 percent by value.

Analysts have predicted that 2008 would be the year Swiss watchmakers would suffer their first significant slowdown in half a decade and 2009 would be even worse as the financial crisis spills over into the real economy. ($1=1.124 Swiss Franc) (Reporting by Emma Thomasson; Editing by Mike Nesbit)

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