ZURICH: Swiss exports rose slightly in September, led by the dominant chemicals and pharmaceuticals industry, although watch sales fell for the first time in 2-1/2 years, hit by slowing demand in China.
Exports from Switzerland, adjusted for two fewer working days this September, rose 0.9 percent and fell by a real 8.0 percent to 16.49 billion Swiss francs ($17.87 billion), the Federal Customs Office said on Thursday.
Overall, Switzerland ran a merchandise trade surplus of 2.015 billion Swiss francs in September. Chemical and pharmaceutical sales grew by a real 2.4 percent.
"The figures confirm the picture that Switzerland is feeling the weakness of the global economy," said Sarasin economist Alessandro Bee. "Up until now that was largely coming from peripheral Europe but we're increasingly seeing that the strong growth in emerging markets is slowing."
Swiss exports to China fell by a nominal 16.3 percent in September and dropped by 43.3 percent to India.
That slowdown was felt particularly in exports of Swiss watches, which fell by a real 8.6 percent to 1.728 billion francs, their first decrease in 30 months. Sales to China were down 27.5 percent and to Hong Kong down 19.9 percent
Strong Asian demand for luxury watches had helped companies such as Swatch Group and Richemont sail relatively unscathed through the economic turmoil.
Shares in Richemont fell 2.4 percent to 60.80 francs by 0702 GMT, while Swatch shares dropped 1.6 percent to 389.30 francs, compared to a 0.4 percent weaker European sector index.
Swiss exporters have been helped by a cap the central bank imposed on the soaring franc at 1.20 per euro a year ago even though many still see the safe-haven currency as too high.
Economists said the subdued export figures suggested that policy was still justified.
"We are seeing improvements in the euro zone so probably we will see some stabilization of exports, but we will also probably still have to wait for higher demand from the euro zone so the Swiss National Bank's floor for the euro-Swiss franc is still justified," said Credit Suisse economist Maxime Botteron.
The Swiss ZEW investor sentiment rose by six points in October to -28.9 points, data showed on Wednesday.
"The leading indicators suggest that the economy should have stabilised so we expect the tide to turn in the coming months," said Sarasin's Bee.
The prices of exported goods rose 7.4 percent in September.
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