Fiscal Tightening Will Work, Say UK Importers and Exporters

By Travelex Global Business Payments, PRNE
Sunday, November 7, 2010

76% of Importers and Exporters Believe Chancellor's Austerity Programme Will Work

LONDON, November 8, 2010 - Over three quarters of the UK's SME importers and exporters believe that
fiscal tightening will successfully reduce the UK's budget deficit, according
to the latest Travelex Confidence Index (TCI) report. 76% believe that the
Coalition's aggressive programme of spending cuts and tax hikes will work.
Travelex said that their ringing endorsement of the Chancellor's plans echoes
that of rating agency Standard & Poor's, who recently upgraded the UK's
economic outlook.

"Most of our business customers seem to be accepting that Government
spending cuts are a 'necessary evil.' Whilst they might hurt business in the
short-term, they are confident that the fiscal squeeze will reduce the
deficit over the long-term, which is encouraging," said David Sear, Global
Managing Director at Travelex Global Business Payments.

Most importers and exporters adopted a "wait and see" approach in
October, as the overall Confidence Index remained stable at 104. The index is
now 7 points lower than it was in August. Faith in the current economic
situation worsened; with confidence in the current economic environment
falling 6% to 50%. Despite this, confidence in future international trading
conditions edged up 2% to 62%.

"Overall, the latest index shows that UK importers and exporters seem to
feel better about their longer term prospects than they do about their
current situation. However, a recent string of positive UK data, such as
stronger than expected third quarter growth and upbeat manufacturing
activity, suggests sentiment among local importers and exporters may head
higher over the near term," commented David Sear.

About Travelex Confidence Index

The Travelex Confidence Index (TCI), released monthly by Travelex Global
Business Payments, provides commentators with 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

    Media enquiries

    Jessica Buttress
    Head of PR, Travelex Global Business Payments UK

Media enquiries: Jessica Buttress, Head of PR, Travelex Global Business Payments UK, +44(0)208-415-4204, +44(0)77954-497129, Jessica.buttress at

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