European Debt Crisis Hits UK International Trade
By Travelex Global Business Payments, PRNEMonday, July 11, 2011
LONDON, July 12, 2011 -
The Travelex Confidence Index dropped by two points to
109 in June, affected by inflation concerns
and weak economic conditions
British importers’ and exporters’ confidence has retreated in
the UK economy, trading overseas and the prospects of future
growth, according to a survey released by Travelex Global Business
Payments. The Travelex Confidence Index, a measure of UK trade
confidence, dipped two points in June, as the unfolding Greek
crisis and UK inflation fears damaged business confidence.
Nearly a third of UK SMEs trading internationally (31%) said
that the UK economic situation has worsened over the last six
months, up 35% since May (23%). Deteriorating conditions in the
Eurozone also impacted confidence in future trading conditions, as
there was a 12% drop in the number of businesses confident that
trade conditions will improve over the next 12 months (May: 68%,
June 60%).
According to the report, many SMEs highlighted inflation as a
major source of concern. Seventy per cent of exporters are alarmed
that further increases in inflation will negatively impact their
competitiveness abroad and adversely affect their business. This is
up 11% since May (63%).
David Sear, Global Managing Director
at Travelex Global Business Payments says:
“The fall in trade confidence, evident from
June‘s index, has been largely
impacted by rising UK inflation and the
debt crisis we are witnessing in
Europe; the UK‘s main trading
partner.
“UK SMEs are already finding it
difficult to trade profitably with Europe, due
to a continuous pressure on margins and bottom line, and are
now anticipating further struggles. With
thethreat of default and collapse across the channel,
it is no wonder that importers‘ and
exporters‘expectations over the next six to 12
months have dropped this month.“
About Travelex Confidence Index
The Travelex Confidence Index (TCI), released monthly by
Travelex Global Business Payments, provides a key indicator on
international trade and economic conditions. Conducted by
independent research company TNS-RI, the Travelex Confidence Index
tracks the views and sentiments of the UK’s SME importers and
exporters across industry sectors and UK regions. The TCI is the
only piece of research available that regularly tracks the UK’s SME
importers and exporters. Visit
For further information or interviews, please
contact:
Jessica Buttress
Travelex Global Business Payments
T: +44(0)20-8415-4204
E:
.
Tags: July 12, London, Travelex Global Business Payments, United Kingdom
