Importers and exporters confident
Jun 10 2011
Businesses feel the world is their oyster when it comes to international trade
Business confidence in international trading is on the increase, research suggests.
According to the latest business confidence Index, compiled by international payments operator Travelex, 68 per cent of importers and exporters are confident that international trade conditions will improve over the next 12 months, while three in four are confident that they will see growth in global trade over the next six to 12 months.
The figures are in contrast to last month, when importers’ confidence in the UK economy hit an all-time low, dropping 26 per cent over the month to 34 per cent. Exporters were equally pessimistic, with confidence tumbling 15 per cent to 47 per cent.
Also last month, three in five businesses that trade internationally expressed concern over rising inflation, which is impacting their competitiveness abroad.
Despite the promising statistics David Sear, Travelex global managing director, warns against excessive optimism. ‘The uplift in confidence has been tempered by a fall in sentiment in the current economic situation, which hit an all-time low,’ he says. ‘Three in five businesses cite inflation as a massive issue and credit continues to be a problem for small businesses trading internationally.
‘Exporters are confident that they can drive the recovery, but in reality, it will be difficult for them to do so when economic and credit conditions are so poor.’
More than half of the businesses interviewed express concern over tighter credit conditions, as they struggle to obtain the financial support needed to maintain stability and boost growth. May saw a 128 per cent increase in exporters struggling to find capital.
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