UK Trade Confidence Hits Eight-month High
Importers and exporters confidence soared in November, after it was revealed that trade played a large part in boosting UK economic growth in 3Q10. Its highest level in eight months, the Travelex Confidence Index rose 8 points during November to stand at 112. Importer and exporter confidence surged unexpectedly as 70% said they felt confident about current trade conditions.
Confidence in the UK economy also flourished in November, as a string of strong economic data created a ‘feel good factor’ within the sector. Eighty-five percent of importers and exporters felt confident that UK economic growth would be sustained, a rise of 19% from the previous month.
Travelex Global Business Payments said that the Office for Budget Responsibility (OBR) would welcome the rise in confidence as the OBR have forecasted trade to contribute 0.7% to the UK’s economic growth over the next five years. “Their increasing confidence will be good news for the OBR, who have presented some bullish trade forecasts for 2011,” said David Sear, global managing director at Travelex Global Business Payments.
Confidence in an export-led recovery shot up to 49%, the highest it has been since April. There was also an increase in confidence in future trade conditions, as 68% were confident that there would be an increase in demand over the next 6-12 months.
Sear said: “Confidence in the trade sector is pivotal to the UK’s economic outlook. We urge the government to continue their vital trade overseas missions and support for exporting businesses through innovation and resource, to ensure that growth in the UK export sector is not jeopardised in 2011.”