China Drives Swiss Watch Rebound

RAPAPORT... Swiss watch exports rose in July driven by a rebound in growth in China and the Asia-Pacific market. "Swiss watch exports returned rapidly to growth followingthe downturn in June," the Federation of the Swiss Watch Industry reportedTuesday. "Hong Kong remained in the red, but performed significantly betterthan it had in June." Shipments rose 4.3% year on year to CHF 1.9 billion ($1.93billion), in contrast to a drop of 11% in June. Supply to China climbed 16% toCHF 151.6 million ($154.7 million). That increase outweighed a 1.3% decline toCHF 256.5 million ($261.8 million) in exports to Hong Kong - the Swiss watchindustry's largest market - where demonstrations have caused a slowdown in thetourist market. Supply to the US grew 6% to CHF 191.8 million ($195.7 million),while exports to Japan and Singapore rose 23%  and 18% respectively. Watches priced above CHF 3,000 (3,062) were the only pricecategory that saw growth, with orders rising 9% by value. Shipments oftimepieces between CHF 500 ($510) and CHF 3,000 slipped 1.3%, while thosevalued from CHF 200 ($204) to CHF 500 fell 0.4%. Supply of products pricedunder CHF 200 plummeted 20%. Exports of watches made of precious metals jumped 12% to CHF635.8 million ($649 million). However, overall volumes slid for the 12thconsecutive month, the sharpest fall since July 2016, the federationnoted. Shipments of timepieces made ofsteel inched up 0.6% to CHF 714.7 million ($729.5 million), while those made ofgold and steel grew 1.1% to CHF 298.2 million ($304.4 million). Supply ofwatches made from other metals edged up 0.6% to CHF 90.4 million ($92.3million). Image: A display of Swiss watches. (Shutterstock)