New resilience from exporters, says BCC

21 January 2013

Although the economy continues to face major challenges, there is both resilience and rising confidence among businesses, according to the latest Quarterly Economic Survey from the British Chamber of Commerce.

Firms in both the service and manufacturing sectors saw improvements in the last quarter of 2012 compared to Q3 but export balances remain below their 2007 levels. Investment also went up in Q4 but remains inadequate.

The BCC believes that despite some negative trends such as cashflow and continuing lack of confidence, the economy will recover slowly in 2013.

The survey showed that the manufacturing balance for export deliveries remained the same as in Q3, at +13 per cent. The manufacturing balance for export orders rose 3 points, to +11 per cent. The service export deliveries balance rose 5 points, to +24 per cent, the best level since Q3 2007. The service export orders balance rose 3 points, to +18 per cent.

The BCC added: “The service export balances are satisfactory by historical standards, and are now higher than their average pre-recession levels in 2007. But the manufacturing export balances are still inadequate.”

Source: British Chamber of Commerce Quarterly Economic Survey