Swiss watch exports declined slightly in July, the first monthly drop in more than two years, raising concerns that demand for pricey timepieces is beginning to slow amid higher prices and economic pressures. 

Shipments fell by 0.9% last month to 2.2 billion Swiss francs ($2.5 billion) with China driving the downturn, the Federation of the Swiss Watch Industry said Tuesday. 

Exports to China, the second biggest market behind the US, fell 16.6% following a surge last year. Singapore, another key market, suffered a 7.9% drop compared to a strong rise a year ago.

The decline, driven by lower exports to the two key Asian markets, suggests booming demand for expensive Swiss timepieces may be starting to cool after climbing to a record above 24 billion francs in 2022. Brands from Omega to Patek Philippe and Rolex have raised prices to offset higher input costs, boosting sales and profits amid the upswing.

The last time Swiss watch exports suffered a monthly drop was in December 2021.

The federation said the slight downturn “will not have a significant impact on the general trend or forecasts for 2023,” suggesting the industry could still hit a record again this year.

Exports declined across all price segments with the exception of watches priced above 3,000 francs, which gained 2.2% by value. 

Shipments to the US, which overtook China as the biggest market in 2021, increased by 5.2% in July, indicating demand is still growing in the largest market for Swiss timepieces.