UK businesses have seen increases in exporting activity over the first quarter of the year, with many businesses expecting the trend to continue in Q2 2012.

UK businesses have seen increases in exporting activity over the first quarter of the year, with many businesses expecting the trend to continue in Q2 2012.

The DHL/British Chambers of Commerce Trade Confidence index, which draws upon more than 1,000 exporters, shows an 8 percent increase on the same quarter last year.

The survey series shows that many exporters found last year challenging, with high input prices for oil and other commodities hammering many businesses. However, the survey for the first quarter of this year shows that the price pressures are easing, and this combined with lower inflation could make it an easier year for many exporters.

The balance of companies reporting increases in export sales (over the last three months) and export orders (for the next three months) rose to levels last seen in Q4 2010.

John Longworth, director general of the British Chambers of Commerce says, ‘At the end of 2011, there was a huge amount of uncertainty surrounding the Eurozone sovereign debt crisis and its impact on UK firms. But the beginning of 2012 saw some semblance of calm retuning which has translated into greater confidence and activity among UK exporters.

‘Export orders and sales have risen strongly in Q1, and documentation returns are the highest on record. While it is too early to say this represents the start of a strong recovery, it’s fair to say that it is a reason to be optimistic - in particular contrast to some of the most recent economic data.’

Phil Couchman, CEO of DHL Express UK and Ireland adds, 'We have seen an increased demand for British exports to countries outside the Eurozone, with our greatest volumes going respectively to the USA and China. We are also seeing an increase in trade to the booming BRIC nations, including Brazil which has recently overtaken the UK to become the sixth largest economy in the world.'

See also: No export-led recovery for SMEs