Thumbs down for Swiss watch exports in April

Swiss watch exports resumed a losing streak in April, hurt by weakness in the key markets of Hong Kong and the U.S. and weighed down by fewer working days.

Exports slipped 5.7 percent to 1.53 billion francs ($1.57 billion), the Federation of the Swiss Watch Industry said Tuesday. For the first four months of the year, the variation is -3.6%. Analysts said shipments gained when adjusted for three fewer working days in April 2017, with Citigroup estimating a 10 percent gain. Exane BNP Paribas said shipments probably were up 7 percent to 8 percent, taking that into account. 

The decline was led by Hong Kong and the U.S., where shipments slid 17 percent and 19 percent, respectively. The recovery is progressing slower than expected, Zuzanna Pusz, an analyst at Berenberg, said in a note, adding she’s cautious on the market.

China continued to show growth with a 39 percent increase, while the U.K. recorded a 30 percent advance, the fastest pace since September. Japan (-7.3%) remained in negative territory, as did Italy (-13.4%) and Germany (-5.3%).

In March Swiss watch exports rise for first time in almost two years, the alpine industry registered an overall rise in trade of 7.5% compared to the same month in 2016.