"So far, 2013 has been in phase with the forecasts. Growth is still the order of the day, but on a more measured basis than in previous years. In other words, the rate of advance is returning to normal, enabling the results to be consolidated at a high level"
- The Federation of the Swiss Watch Industry
Swiss foreign trade surplus rose more than expected in June, as a fall in imports outpaced drop in exports, the latest report from the Federal Customs Administration showed. The country posted a 2.73 billion francs surplus in June, slightly higher compared with previous month's figure, when surplus stood at 2.2 billion. Economists, however, projected a surplus of 2.15 billion. The improvement was driven by a sharp decline in imports, which fell 6.5% to 14 billion, offsetting the drop in exports, which inched lower 5.5% to 16.7 billion. During the second quarter, exports totalled 51.2 billion francs, 18% lower from a year ago. On a quarterly basis, exports fell 3%.
Separately, the Federation of the Switch Watch Industry FH said that watch exports dropped 3.1% on annual basis, as Swiss watchmakers continued to struggle with overstocking in Asian markets. Shipments of domestically-produced watches stood at 1.85 billion franc in June, 4% lower in real terms compared with the corresponding period in the prior year. Overall, the pace of growth for industry exports has slowed significantly since the beginning of this year. Exports from country is still falling, even despite the support from the SNB, which imposed a cap on soaring Franc 2 years ago, however, exporters are still suffering from sluggish demand in Europe, Swiss largest trading partner.
© Dukascopy Bank SA