(March 20): Swiss watch exports’ downward trajectory resumed in February after a one-month respite, with all main markets seeing a decline.

Shipments from Switzerland’s third-biggest exporting industry fell 8.2% overall, hampered by slow demand in China, the Federation of the Swiss Watch Industry said on Thursday. In total, 102,000 fewer watches were exported.

Only watches with an export price below 200 Swiss francs (RM1,010) posted a positive result. Mid-market watches — priced between 500 and 3,000 francs — fell 15.4%, while timepieces above 3,000 francs slipped 7.3%. Precious metal watches held up better than steel watches, despite high gold prices.

Consumer products stocks were the worst performing in Europe on Thursday, with Swatch Group AG and Richemont leading the sector’s losses. 

The export figures highlight persistently tough conditions for Swiss-based watchmakers, which include independents like Audemars Piguet, Patek Philippe and Rolex SA, after a boom during the pandemic. Exports were down 3% last year.

Even the US market, which had previously held up, faltered in February with shipments down 6.7%.

“Whilst prior areas of weakness like the Chinese cluster remain a feature, the key incremental headwind of recent weeks appears to have been softer demand in the US,” Jefferies analysts including James Grzinic said in a note.

US consumer confidence fell the most since August 2021 last month on concerns about the outlook for the broader economy, indicating that uncertainty over President Donald Trump’s policies is weighing on consumer spending.

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