Luxury Swiss Watch KOF Data – May reading +5.5

May readings from a survey of Swiss watch producers shows that sentiment on expected orders over the next three months improved slightly to -6.7 (April -11.6). Such improvements likely come on the back of the reopening of some economies.

29 May 2020

The KOF Swiss Economic Institute monthly watch industry survey shows production plans and order expectations for the next 3 months

Source: KOF Business Survey, Balanc is the difference between the share of positive answers and share of negative answers

This line graph charts expected watch production and watch orders over the next 3 months from January 2001 through January 2020.

May survey of Swiss Watch Producers shows sentiment improving

The May readings from KOF Swiss Economic Institute (monthly survey of Swiss watch producers) shows that the expectation of production plans has improved to +5.5 (restated April -7.0). Sentiment on expected orders over the next three months also improved slightly to -6.7 (April -11.6). Such improvements likely come on the back of the reopening of some economies, with, for instance, stores in Switzerland reopening in May. We note that with a 0.75 correlation to Swiss Watch Exports (SWE), the latest KOF data implies that April SWE could see some sequential improvement (however, assuming no underlying change m/m and adjusting for the number of working days exports of wrist watches in April, due on 28th May, would come at -87% yoy). Nevertheless, the spreading of coronavirus and a potentially slower recovery of tourism add another leg of downside risk. This we believe will likely take a toll on industry performance in the near-te

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