| Actual | Previous | Revised | |
| Balance | CHF1.350B | CHF5.606B | CHF5.369B |
Highlights
Switzerland’s seasonally adjusted trade surplus narrowed to 1.353 billion francs in September from 5.369 billion francs in August, as a surge in imports far outpaced a modest rise in exports.
Imports jumped 24.9 percent on the month to 21.881 billion francs, the second-highest monthly value on record. Exports rose 1.5 percent to 23.234 billion francs, after falling 17.7 percent in August.
Chemical and pharmaceutical products drove the swing. Imports in the sector climbed 87.8 percent to 8.343 billion francs, with pharmaceutical imports alone up 130.8 percent to 7.011 billion francs. Exports edged up 0.5 percent to 10.968 billion francs. That cut the sector’s surplus to 2.625 billion francs from 6.472 billion francs in August.
Watch exports rose 1.6 percent to 2.200 billion francs, while watch imports increased 16.4 percent to 0.257 billion francs. The sector’s surplus was nearly unchanged at 1.943 billion francs, compared with 1.945 billion francs in August.
Trade with the United States also shifted. Exports to the U.S. rose 8.5 percent to 3.319 billion francs after a drop of 29.6 percent in August, while imports from the U.S. rose 31.9 percent to 1.490 billion francs. The surplus with the United States narrowed to 1.829 billion francs from 1.928 billion francs.
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 alongside their respective export and import components.
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.