Despite a very unfavourable base effect, Swiss watch exports in December exceeded their excellent level of December 2005. They ended the year on a monthly value of 1,259.1 million francs, 3.3% better than twelve months previously. This remarkable result brings down the curtain on a very solid performance in 2006 during which the trend showed no reverses whatsoever. The total value of watch exports was 13.7 billion francs, a new record generating growth in two digits for the second consecutive year. The increase compared to 2005 was 10.9%.
Demand remained strong throughout 2006, particularly for luxury products, which acted as a locomotive for the industry. The economic context also proved favourable. All in all, the Swiss watch industry now has three years of strong growth to its name, following +9.2% in 2004 and +11.5% in 2005.

<Products>

During December, exports of wristwatches saw their value increase by 3.9%, thanks mainly to products manufactured from precious metals. Steel timepieces marked time compared to December 2005. The number of pieces exported showed a very positive trend, with an increase of 6.7% or 130,000 units in volume terms, taking the monthly level to more than 2 million watches.
Over the year as a whole, wristwatches recorded an increase of 11.6% in value terms. 18-carat gold (+17.6%) and steel (+10.3%) contributed greatly to this result. Platinum timepieces (+23.0%) were also a key factor. The strongest growth was recorded by gold-plated products (+59.6%). The number of timepieces exported increased by 2.1% compared to 2005, due above all to steel (+2.7%) and the category of other materials (+7.0%). The latter consists in particular of plate (rolled), hard metals, plastic and mineral-based materials. The category of other metals, mainly aluminium, registered a downturn of 7.3%.
The industry’s annual results were influenced greatly by luxury products, which showed very strong growth throughout 2006. In the final analysis, wristwatches with a value of more than 3,000 francs (export price) posted an increase of 27.0% by value and 34.7% by volume. Below this price, the value of exported timepieces remained stable, while volumes increased by 1.2%, generating slightly more than half of the total increase.
Wristwatches were not alone in registering growth in 2006, with exports of movements, watch cases, dials and bracelets also increasing. While cases and dials recorded a rate higher than the industry average, other products were content with a more modest increase. Exports of alarms and other clocks rose by 5.1%.

<Markets>

During the year 2006, the fifteen main markets showed the following trend;

The year ended with a decline for the two leading markets of the United States (-2.7%) and Hong Kong (-8.7%). In December, Japan (+10.8%) and France (+16.7%) registered growth in two digits. A number of markets lost ground: the United Kingdom (-12.8%), China (-18.0%), Taiwan (-15.4%) and Thailand (-13.1%).
For 2006 overall, the leading 20 markets all achieved a positive performance, with eleven of their number posting increases in two digits. The United States was the foremost market for Swiss watchmaking products, followed by Hong Kong and Japan, cementing a top-three ranking that has been in place for some considerable time. Europe proved more dynamic than Asia and America with an increase of 12.7% compared to 2005. France and Germany played a particularly important role in this result. China remained in tenth place, while Russia was placed thirteenth.