The credit crisis has finally caught up with the watchmaking and jewellery industry, which for most of this year has maintained a high-wire act to enthralled spectators wondering how long the gravity-defying show could last.

Despite an economic slowdown that began a year ago, sales have continued to grow strongly for most of this year. But luxury no longer appears immune to the economic cycle after an exceptionally weak August, followed by an autumn of bank collapses and crashes on world stock markets.