Exports help ease UK out of double-dip recession

The UK’s emergence from its deep-seated double-dip recession will not only boost business confidence but increase the momentum for export sales, according to the British Chamber of Commerce (BCC).

Provisional government figures show that Britain enjoyed a one per cent growth during the third quarter of 2012. The announcement coincides with evidence from the latest DHL/BCC Trade Confidence Index that UK export sales are continuing to grow.

The survey revealed that although the majority of firms reported that export orders remained constant, many were worried about a slowdown. In the second quarter 49 per cent of firms reported increases in overseas sales but this declined to 39 per cent during the third quarter.

However, 54 per cent of firms said they expected turnover to increase over the next 12 months.

The BCC said that continuing Eurozone problems coupled with a weak domestic economy presented businesses with major challenges over the next year.

“Rebalancing the UK economy towards exports is key to ensuring the UK’s economic recovery is sustainable,” said BCC director general John Longworth, “The latest index shows that the environment for many exporters is challenging. While many businesses are breaking into new markets, challenges in the Eurozone and the wider global economy have created uncertainty for others.

“The survey shows that confidence in the longer-term outlook for turnover and profitability is on the up, however increasing concerns about cash flow and weakening balances for export sales and orders in the near-term, underscore the importance of taking action now to support exporters. The government must not allow a lack of export support and cash-flow problems to choke off a export-driven recovery.”