The Swiss watch industry has enjoyed one of its best ever months in October, as platinum helped to drive demand.

Figures released by the Federation of the Swiss Watch Industry showed that exports hit the highest monthly value ever, racking up almost SFr1.2 billion (£560 million).

The monthly high represents a nine per cent increase on the figures for 2003, and suggests the luxury goods industry is beginning to pick up once more.

Analysts said platinum, gold and steel watches had been the most popular, with the US and Hong Kong markets proving particularly profitable.

Earlier this week luxury group Richemont announced a sharp rise profits on the back of its watch sales, as the industry looks to benefit from the current market conditions.

Richemont's chief financial officer Richard Lepeu said that European growth had returned again, as higher consumer confidence began to foster better sales.