Swiss exports dip in nominal terms in July

ZURICH: Exports from Switzerland rose by a real 4.8 percent in July to 16.649 billion Swiss francs, the Federal Customs Office said on Tuesday.

But in nominal terms they fell 0.7 percent, the data showed.

ANALYSTS' COMMENTS

NIKOLA STEPHAN, INFORMA GLOBAL MARKETS

"The nominal balance obviously looks quite good as it shows a wider surplus but once prices are taken into account, the strong Swiss franc leaves its mark with a month-on-month drop in real terms in exports and only a small increase in imports.

"Exporters will watch the SNB's efforts to stop the franc appreciation closely but after an initial boost to euro/franc, the effect of extra liquidity and talk of a peg seems to have levelled off and the SNB may still face difficult times ahead to keep the franc under control."

FABIAN HELLER, CREDIT SUISSE:

"We can see that export growth continues to flatten out. Figures are still positive in real terms and when adjusted for working days, but the strong currency is having an impact on exports.

"Lower export prices show that exporters are adapting their margins. It is always a bit difficult to draw conclusions when looking at individual months because the adjustment for working days causes distortions. But the overall trend shows that exports are no longer as strong as they used to be."

JOERG ZEUNER, VP BANK

"The strong franc is increasingly becoming evident in the export figures. Long-term contracts and companies cutting margins have until now been able to forestall the worst. But anxiety among exporters continues to rise, the longer the franc continues to remain strong.

"Given the importance of the export sector for Switzerland, the economy as a whole is threatened with a marked slowdown in growth.

"The measures of the SNB to weaken the franc go in the right direction. Yet it remains to be seen whether they are effective in this risk-averse environment."

FEDERATION OF THE SWISS WATCH INDUSTRY

"Watch industry exports in July remained very close to the level reported in the first half. Their value gained 21.2 percent compared to July 2010 at precisely 1.7 billion francs. Previously, this figure had only been bettered twice in November 2007 and 2010."

"In the strong franc environment the prices of goods fell markedly in both transit directions."

"Exports to the EU fell 3 percent, while those to Latin- and North America sank only slightly."

Copyright Reuters, 2011