Importers and Exporters Unconfident About Economic RecoveryBy Travelex Global Business Payments, PRNE
Wednesday, July 7, 2010
Travelex Confidence Index Records 5 Point Fall in Importer and Exporter Confidence in June
LONDON, July 8, 2010 - UK importers and exporters are concerned that spending cuts will threaten
the fragile economic recovery, a city expert warns in a survey published
The Travelex Confidence Index's monthly outlook on international trade
recorded a 5 point fall in confidence in June to 103, with the Expectations
Index falling 12 points to 94.
The Index was carried out between 18th June and 1st July. During the
period the Emergency Budget was announced on 22nd June.
"Speculation over the 'age of austerity' has had a marked impact on
importer and exporter confidence in June," comments David Sear, Global
Managing Director at Travelex Global Business Payments. "Chancellor Osborne's
spending cuts and tax hikes dominated the headlines and the figures suggest
it was an unsettling month for UK importers and exporters."
The message that came through was that "businesses are clearly concerned
that the UK's fragile economic recovery will lose momentum over the next 12
months and fiscal tightening may push the UK back into recession," says Sear.
"And with the economic recovery so uncertain, I think the Bank of England
will keep interest rates on hold until the beginning of 2011 at least."
Travelex's Confidence Index saw a sizeable shift in economic sentiment
during June, as 27% of importers and exporters now feel that the UK economic
recovery is not sustainable, compared to 18% in May. Sear expects to see a
downward trend in economic confidence in the coming months, as major
economies begin to withdraw stimulus.
Despite their concern for future economic conditions, importers and
exporters view of current international trading conditions was upbeat, with
68% expressing confidence. Sir Andrew Cahn, CEO of UK Trade & Investment,
comments, "It is encouraging to see that exporters are generally upbeat, if
understandably cautious, about current international trading conditions.
Creating a more positive business environment, supporting growth and
concentrating on developing a more balanced, low-carbon economy, which is
less dependent on a narrow range of economic sectors, will be key to driving
the economy out of recession."
Notes to editors
To receive a copy of the June TCI report, contact Jessica Buttress.
For further information about the Travelex Confidence Index,
About Travelex Global Business Payments
Travelex Global Business Payments is a global foreign exchange specialist
providing the payment and receipt of domestic and international funds for
businesses of all sizes. For more than 30 years, Travelex Global Business
Payments has provided clients with sophisticated market knowledge, leading
edge technologies and practical and innovative solutions tailored to
Media enquiries Jessica Buttress Head of PR for Travelex Global Business Payments UK +44(0)208-415-4204 Jessica.email@example.com
Media enquiries: Jessica Buttress, Head of PR for Travelex Global Business Payments UK, +44(0)208-415-4204, +44(0)77954-497129, Jessica.buttress at travelex.com
Tags: July 8, London, Travelex Global Business Payments, United Kingdom