Exports of Swiss watches in China rose 59.1 per cent in July, reflecting a second consecutive month of growth buoyed by steady market recovery and domestic demand.

Data from the Federation of Swiss Watch Industry FH showed overall exports fell 17 per cent year on year in July, with major markets exhibiting growth or stable performance. The figure also showed a slower pace of decline compared to a downturn of 35.1 per cent in June.

The "very strong growth" in China illustrated an early recovery in this market and the gradual resumption of domestic rather than foreign sales. In June, China recorded a year-on-year increase in exports of 47.7 per cent.

Exports in the US in July meanwhile were stable, registering a drop of 0.6 per cent after three months of extremely poor performance. The situation in Hong Kong remained dire, with shipments falling 42.9 per cent. The market "showed no real signs of improving, although the decline was slightly less sharp than in April," the federation said.

Swiss watch exports in the United Kingdom were up 2.5 per cent, demonstrating some signs of recovery ahead of other European markets such as Germany (-1.1 per cent), Italy (-33.6 per cent) and France (-30.6 per cent). Exports in Japan sank by 32.1 per cent largely due to the lack of Chinese tourists.

The federation earlier said Swiss watch exports are likely to contract by 30 per cent in 2020 as major markets continue to face uncertainties alongside a significant plunge in international tourism due to the Covid-19 crisis.