"We see some big differences between sectors"
- ZKB analyst Cornelia Luchsinger
Swiss trade surplus narrowed in March; however, less than initially was estimated, due to a loss of momentum in the watch and machinery sectors, the Federal Customs Office said Tuesday. Country's trade surplus stood at CHF1.9 billion in March from CHF2 billion in February, beating analysts' expectations, which called for a CHF1.73 billion reading. The report also showed that shipments from the country fell by a real 2.0% in March to CHF16.95 billion. At the same time, exports from the machinery and electronics sector, which is Swiss second biggest export category, tumbled by a real 9.3%, while sales of watches dropped 5.4% from a year earlier. The downbeat trade figures are adding to concerns the Swiss recovery is slowing.
"We see some big differences between sectors," said ZKB analyst Cornelia Luchsinger. "The watch industry has lost a lot of its dynamic, and this seems to be a trend, and machinery has been in negative territory for quite a while, which is also a negative for the labour market."
"The Eurozone crisis is weighing on Switzerland, which is very intertwined with the euro zone economies," said Sarasin economist Jan Poser. "I wouldn't attribute the fall in exports too much to the strong Swiss franc, although it remains a headwind."
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