UK based exporter confidence increases amidst continuing global uncertainty
One third of British exporters reported a sales increase in the last quarter compared to only 18% that said they fell
More than half (58%) of British exporters are confident their profitability will increase this year despite political instability in the Eurozone and the crisis in the Ukraine new research by the British Chambers of Commerce (BCC) and DHL Express has revealed.
The report also revealed that 66% of manufacturing firms believe their turnover will improve compared to 61% in Q3 2015. A third (36%) of exporters claimed their export sales increased against just 18% that reported a decrease.
The research suggests UK exporters are confident about all aspects of their business with 81% trying to recruit staff at the end of last year in comparison with 75% in Q3 2014. Additionally, 35% claim the exchange rate is having an impact on their global ambitions compared with 29% last quarter.
More than 2,300 exporting firms were measured on the Trade Confidence Index, which measures both UK exporting activity and business confidence. The volume of trade documentation index increased to 117.43, indicating that UK businesses are undergoing successful international expansion into overseas markets.
By region, Wales, London and Yorkshire & the Humber showed the highest increase in exporting activity.
Director general of the BCC John Longworth commented: “British exporters are rising to the challenge despite the uncertain global outlook; however, we are yet to see this translate into stronger trade and current account figures.
“We know that when businesses do export, they grow, on average, 20% more than businesses that don’t. With the vast majority of exporters looking to take on additional staff, they are generating growth and prosperity for the nation.
“To link more UK businesses to the vast opportunities around the world, we must foster the development of potential exporters, many of whom are unable to access finance even before they are able to consider global expansion. Strengthening the UK’s international trade performance must be a top priority for any incoming government.”