DHL Express has welcomed the results of its recent survey of UK businesses, which indicates thatthe UK will see growth in international trade this quarter.
The express operator polled 500 internationally trading UK businesses from the manufacturing,technology, FMCG, automotive and life sciences sectors at the end of last year, and 90% ofrespondents expected overseas demand for their products to grow or remain constant in the secondquarter of 2011. Around half expected export demand to grow.
These figures are supported by UK Office of National Statistics (ONS) Trade in Goods andServices data, which show that in the past year, exports grew by 11.5% and imports grew by 11.7%.Manufactured goods made up 75% of imports and 77% of exports, according to the figures.
Of those manufacturers anticipating export growth, 25% expect this to come from the US and 12%expect this to come from France and Germany, respectively. Almost eight out of ten (78%)businesses across all sectors surveyed believe that the resurgence of the manufacturing industrywould stimulate the overall economy, and 40% believe the manufacturing sector will see growth inthe next three months.
When asked about their trading confidence, almost six out of ten (57%) manufacturing respondentssaid they were optimistic about trading conditions for the coming months. More than six out of ten(65%) said they expect sales growth in 2011 and 59% anticipate profit growth. Half (51%) alsobelieve that the 2012 Olympics will create a greater global demand for British goods.
The picture for imports is also solid. In 2010, 29% of manufacturing importers increased importsand 32% expect to import more over the next three months.
Phil Couchman, CEO for DHL Express UK and Ireland, commented: “The international express marketis recovering after a turbulent period caused by the financial crisis; businesses altered theirtrading patterns over the past few years to cut costs which had a direct effect on shipments.Despite the weak economic conditions, last year saw the amount of international shipments handledby DHL Express grow strongly. This is supported by ONS Trade in Goods and Services data, which showthat in the past year exports grew by 11.5% and imports grew by 11.7%.
“It’s extremely promising to see UK businesses are confident about their future – home-grownbusinesses are vital to the UK economy; and DHL Express provides them with the vital link to therest of the world.”
Although the survey revealed a positive outlook, companies said it was important to remainvigilant to the strong competition around the world, from businesses in countries such as China,Germany and the US. The majority of businesses believe that the UK economy would benefit fromcertain measures to further boost international trade. For example, 80% of respondents would liketo see the manufacturing sector incentivised; 62% want to see a loosening of the business taxregime; and 57% want to keep sterling weaker than it has been historically. In addition, almost twothirds (65%) believe that keeping interest rates at their current low level of half a per cent iskey to economic growth.
