Export orders down but confidence remains strong, says BBC quarter

1 September 2014

Export order balances for manufacturing and service sector firms fell in Q2 2014, according to the latest survey of  6,944 businesses by British Chambers of Commerce (BCC).

According to the survey, overseas sales order balances for manufacturers fell 10 points to 30% while for services business the index fell by nine points to 29%

However, the general trend for exports from both sectors of the economy is still upwards with both standing far higher than they did five years ago.

The survey says that the index for both manufacturing and services companies expecting turnover to increase in the next 12 months fell by four points, to 63% for manufacturers and to 56% for services companies.

The BCC survey says: “This quarter's results show that the economy is still strong and moving in the right direction, with many key balances higher than they were before the recession. However, the falls in all the export and investment balances act as a timely warning that although growth is stable, challenges facing the economic recovery still remain.”

Chamber International director, says: " Our experience working on the ground with new and experienced exporters is that we have never been busier. There is huge interest in exporting and massive demand for help and advice.

“The economic downturn created a far wider understanding among businesses that they cannot rely on domestic markets and also that there is demand for British goods and services overseas.

"We have helped a number of SMEs export for the first time during the last  six months. Many we are supporting are looking beyond Europe, where the economy is flat,  to high growth markets in Asia and the Middle East and it has to be borne in mind that the research and preparation for this takes time and careful planning in order to be successful.

“From what we are seeing  and hearing from businesses, there is a groundswell of interest in exporting but it could be one-to-two years until this becomes apparent in economic results."

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