Trade Confidence Slumps Further as Importers and Exporters Warn That UK is on the Verge of a Double DipBy Travelex Global Business Payments, PRNE
Tuesday, March 8, 2011
LONDON, March 9, 2011 - British importers' and exporters' confidence in the economy has hit an
all time low, as the threat of a double dip recession becomes more of a
reality in the run up to the Budget, according to the Travelex Confidence
Index report released today.
More than half of importers and exporters (51%) think a double dip
recession is likely, a 17% increase from January 2011, whilst 45% are
concerned the Chancellor's Budget will negatively impact their business.
All Indices recorded a drop and the Confidence Index tumbled five points
to 101 from last month and 10 points from its high in November last year.
The Current Situation Index, which monitors importers' and exporters'
views on current economic conditions and availability of business credit,
fell to a record low to 94 - a seven point decrease. Access to credit remains
a problem, with 52% of importers and exporters saying it is no easier to
obtain credit this year than it was last year. This is the highest level it
has been since April 2010.
The International Trade Index has tumbled 14 points since its high of 113
in November, as importers grow increasingly concerned over the impact of
sluggish consumer demand.
Even the Expectations Index, which historically has remained relatively
stable, fell by one point to 99, indicating a chink in the resolve of
importers and exporters. Only 56% of importers and exporters said they were
confidence about future trading conditions, a 4% drop from the previous
"It is an unsettling time for British importers and exporters, as
uncertainty over the economy grows in the run up to the Budget," comments
David Sear, Global Managing Director at Travelex Global Business Payments.
"The resilience we saw towards the end of last year as the Coalition put
forward their strategy to address the deficit has started to weaken as the
tax hikes, changes to consumer spending and the increase in National
Insurance start to become a reality.
"Confidence plays a huge part in our economy as individuals and
businesses tend to spend more the more confident they feel. In this current
climate it is less easy for importers and exporters to feel confident. Last
month we saw the trade deficit widen to the highest on record, which shows
that exports are not supporting the recovery as expected."
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
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Media enquiries: For further information or interviews, please contact: Emma Kane/Alicia Jennings, Redleaf Polhill T: +44(0)20-7566-6741, E: tgbp at redleafpr.com; Jessica Buttress, Travelex Global Business Payments, T: +44(0)20-8415-4204, E: jessica.buttress at travelex.com
Tags: London, March 9, Travelex Global Business Payments, United Kingdom