| Actual | Previous | Revised | |
| Balance | CHF3.609B | CHF3.036B | CHF2.924B |
Highlights
The trade surplus started the year by expanding to 3.609 billion Swiss francs, seasonally adjusted, from a revised 2.924 billion in December, with exports increasing 2.3 percent to 22.973 billion francs. Imports fell 0.9 percent to 19.365 billion, contracting for the third consecutive month.
Pharmaceutical exports rebounded in January, rising 7.8 percent month-on-month after contracting 14.3 percent the month before. Chemicals reversed a December gain of 2.9 percent by falling 4.1 percent in January.
After gaining 3.2 percent in November and 4.6 percent in December, watch exports fell 0.4 percent in January.
Trade with the United States saw a contraction in exports of 7.1 percent in January from December when they dropped 22.3 percent. Imports rose 33.4 percent after declines of 2.1 percent and 8.3 percent in November and December, respectively.
For the time being it appears trade rhetoric coming from the United States has been tempered, and the Swiss government could point to the increased imports from the US to mollify objections. It's still to early to see if there is a positive trend emerging for chemical and pharma exports and, by extension exports as a whole. Still, today's data underscore a positive start to the year.
Definition
The merchandise trade balance measures the difference between the total value of Swiss merchandise exports and imports. The focus is on the balance of trade in goods, excluding precious metals, gemstones, works of art and antiques. This is provided in unadjusted and seasonally adjusted measures for cash and volume.
Description
Changes in the level of imports and exports along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect the value of the Swiss franc in the foreign exchange market. Switzerland's major trading partners include Germany, France, Italy and the United States. While Switzerland still exports large amounts of traditional products such as chocolate and watches, more than half of Swiss exports are in mechanical and electrical engineering and chemicals today. A positive trade balance indicates a trade surplus while a negative balance represents a trade deficit. Trade surpluses indicate that foreigners are buying more Swiss goods, which are typically paid for in Swiss Francs. This translates into greater demand for the currency and upward pressure on the value of the Franc. However, if the balance is a deficit, Swiss consumers are buying goods from trading partners which translates into higher demand for foreign currencies placing downward pressure on the value of the Franc.