Difficult global economic conditions in the eurozone and US are
affecting British exporters' confidence to invest, and their desire
to take on staff.
But it's not all bad news. In our DHL/BCC Trade Confidence Index (TCI) surveying over 1,000 UK exporters, we found an attitude indicating cautious recovery from SMEs. Most expect to see growth in the current market, although it is on a conservative scale.
Confidence in turnover and profitability improving over the next
year increased by 5% and 11% respectively, compared with their
views in Q1. However, our survey also found that despite
anticipated growth, UK exporters are reticent to invest in their
business or take on more staff.
While it is encouraging to see an expectation of growth, the reluctance from exporters to invest is a concern, particularly when factors such as the current weakening of the sterling and flat base rate could give UK businesses a competitive advantage over international traders.
As the lifeblood of the British economy, we need to shore up confidence within this community and ensure they are supported in tapping into the purchasing power of other markets. A thriving exporting industry is key to help bring the country's books back to black and securely place Britain on the trade map.