Buyers of luxury Swiss watches are reining in spending amid economic and geopolitical concerns following a pandemic era boom in demand, reported Bloomberg on Wednesday.

Monthly exports increased 3.1% to CHF1.9 billion ($2.2 billion) by value, added the report, quoting data from the Federation of the Swiss Watch Industry.

Growth was as high as 11.8% in the first half of last year. The number of timepieces exported rose 2.9% to 1.2 million as shipments of the Swatch brand’s Blancpain and Omega collaborations drove demand at the low end.

Top UK Rolex retailer cuts forecast as luxury shopping dips

The strong value of the Swiss franc is also putting pressure on producers which have raised prices to protect margins.

In January, Bloomberg reported that Watches of Switzerland Group – the top seller of Rolex watches in the UK – is cutting its sales and growth forecasts, blaming shifting luxury spending habits and erratic demand.

Exports to the US, the biggest market for Swiss timepieces, rose by a modest 2.2% by value. Mainland China exports gained 5% while shipments to Hong Kong fell 4.7%.

Exports of watches hit a record CHF26.7 billion by value in 2023, but the rate of sales growth dropped to just 3.6% in the second half of the year as consumers pulled back, added the report.

The luxury watch industry is the third largest export sector in Switzerland and employs about 60,000 people.

Swiss luxury watchmaker Rolex raises prices in the UK, leaves rates in US unchanged

High-end watchmakers from Rolex to Patek Philippe to Vacheron Constantin are set to unveil new models at the annual Watches and Wonders fair in Geneva in April.