Importers' Confidence in Economy and Trading Conditions Slumps

By Travelex Global Business Payments, PRNE
Tuesday, February 8, 2011

LONDON, February 9, 2011 - British importers' growing concerns over sluggish domestic demand forced
confidence in the economy to a two month low in January, according to the
Travelex Confidence Index report released today.

Although the overall Travelex Confidence Index was stable at 106,
confidence in the International Trade Index and Current Situation Index
dropped three points from the previous month, driven by importers' negative
attitudes to current and future economic conditions. Travelex Global Business
Payments said that looming government spending cuts, as well as rising
inflation, were responsible for the fall in importers' confidence.

In contrast, British exporters' attitudes to the economy remained fairly
buoyant in January, with 67% expressing confidence in current economic
conditions. Travelex said that this was consistent with last month's trade
figures, which showed that excluding oil and erratic items, the volume of
goods exports rose by 3.4% and the volume of goods imports rose by 0.3%,
compared with October.

"It doesn't seem like British exporters are worrying about much at the
moment, apart from the performance of their own business," comments David
, Managing Director at Travelex Global Business Payments. "Their recovery
is well on track, bolstered by the resurgence of exports and the renewed
political push for an export led recovery."

The report also provided an interesting snapshot into the opinions of
British exporters and importers before news of the UK's shocking fourth
quarter contraction. Travelex Global Business Payments revealed that
businesses were fairly sanguine about sustainable economic growth prior to
the data release. 61% of exporters and importers were confident that a double
dip recession would be avoided. Sear comments, "UK GDP figures were
undoubtedly disappointing - even with the wintry weather factored in. But in
terms of growth figures for the first quarter of 2011, exporters' resilience
is extremely encouraging."

Notes to editors

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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
individual requirements. Every year, Travelex Global Business Payments
processes payments around the world over 35,000 businesses to 1 million

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: For further information or interviews, please contact: Emma Kane/Alicia Jennings, Redleaf Polhill T: +44(0)20-7566-6700, E: tgbp at; Jessica Buttress, Travelex Global Business Payments T: +44(0)20-8415-4204, E: jessica.buttress at

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