Firms in the UK are steadily exporting more, with a 5.2% year-on-year rise in the final quarterof 2012, as business confidence improves, according to the latest quarterly DHL/BCC Trade
Confidence Index report.The latest report, which measures UK exporting activity (Export Index) and business confidence(Confidence Index), shows that businesses’ confidence about future turnover and profitability is ata two year high, and exports are at their third highest level since the DHL/BCC index report beganin 2010. The Export Index now stands at 113.75 points, which represents a 1.4% increase on theprevious quarter and 5.2% increase on the previous year.
The report found that nearly half of exporters (45%) said their export sales increased, comparedto just 13% of respondents who said that they decreased. Manufacturing firms saw a clear upturn inQ4, with higher export sales for 45% of businesses, up from 34% in Q3. Service firms also slightlyimproved exports, with sales up for 46% of firms, compared to 42% in Q3.
British firms are also gradually feeling more confident about their business prospects, thereport showed. Among exporters, 59% feel that their turnover will increase in 2013 and 50% believethat their profitability will improve this year. This growth will not necessarily translate intonew jobs, however, as only just over a quarter of firms (27%) said they expected to increase staffthis year, down from 31% in Q3.
John Longworth, Director General of the British Chambers of Commerce (BCC), commented: “It’sencouraging to see Britain’s exports continue to grow thanks to the ambition and talent of UKbusinesses, despite the continued challenges they face.
“But we mustn’t be complacent about the health of our export sector, as there is always a dangerthat it could be choked off through a lack of working capital to fulfill orders. The much-neededre-balancing of exports is underway, but for it to really have an impact in boosting the economicrecovery, it needs to happen faster. We need more companies to take the leap and export for thefirst time, and to do this, they need the right support from government. Expanding trade promotionbudgets is a good start, but the introduction of a dedicated Export Voucher scheme would givebusinesses on the cusp of exporting the advice and support they need to take this crucial steptowards boosting our economic recovery.”
Phil Couchman, CEO of DHL Express UK and Ireland, added: “This positive upturn in terms ofexports and confidence serves as encouragement not only for those who are already tradinginternationally, but also for those smaller businesses who are getting ready to export for thefirst time. As a global business, we know that there are countless opportunities on the horizon forBritish made goods.
“In this report, we’ve identified Australia as a key market to enter. Prospective exporters canenjoy the benefits of a shared language, a similar culture, and Australia’s close proximity to AsiaPacific. For many sectors including fashion, this territory has fantastic potential.”
