Exports strong and business confidence at six-year high
UK export orders in quarter three remained close to the record high levels seen in quarter two and turnover confidence among exporters is now at the highest level since 2007, according to new figures.
According to the British Chambers of Commerce and DHL’s quarterly report on health of UK export market, confidence was particularly strong among exporting manufacturers, with 66% believing that their turnover is likely to improve, compared with 61% in the previous quarter.
The index number, which is calculated from the volume of export documents issued to businesses selling goods abroad, now stands at 116.32 – the third highest figure on record. This is 3% higher than at the same time in 2012.
The key findings from the report are:
• Export orders increased for nearly half of service sector firms (47%) and for 38% of manufacturing firms.
• Nearly half of exporters (46%) said their export sales increased in Q3 2013, compared to 8% who said that they decreased.
• Confidence among exporters in terms of future turnover is at its highest level since 2007 (69%), with 66% of manufacturers expecting turnover to increase.
• More than half of exporters (55%) believe that their profitability will increase this year.
• Around a third of exporting firms (34%) said that they expected to increase staff over the next quarter, up from 31% in Q2 2013.
• The number of exporting businesses claiming that raw material costs were adding to price pressures increased from 33% to 34% in Q3 2013.
John Longworth, director general of the British Chambers of Commerce (BCC), said: “UK exporters are more optimistic than ever about their prospects, with confidence higher than it has been since before the economic crisis. Exports have remained strong, and even more exporting firms are looking to take on new staff. The companies I visit across the UK are inspiring and dedicated, and these results are living proof that it will be businesses that drive our recovery forward.
“Our bullish exporters give us even more reason to believe that the economy is turning a corner, and that full-year growth is likely to be stronger than expected. But although things are looking up, there is more to do before we are well and truly on our way to having a great economy. Exporting businesses are doing all they can to drive growth and find new opportunities overseas, but the government can’t expect them to just get on with it without doing more to support them.
“Politicians have to make export support a top priority and ensure that firms have access to real, practical, business-to-business help to give them the best possible chance of breaking into new markets across the world. Currently, we only spend 0.05% of GDP on promoting exports and inward investment. This is nowhere near enough if we are relying on exports to rebalance our economy. We urge the government to use the Autumn Statement to kick-start a global trade revolution and put the economy front and centre.”
