The report comes days after Prime Minister David Cameron stressed the importance of trade to the UK economy, telling the countryâs business leaders to âsell Britain â British exports and Britain as a place for investment.â
Despite the impending âage of austerityâ, the Travelex Confidence Index showed that exporters remained upbeat in December, with 59% expressing confidence in current economic conditions. They clearly rejected the likelihood of a double dip recession, as 75% were confident that economic growth would be sustained in 2011.
The Index also highlighted the growing pessimism of British importers, driven by fears over weakening domestic demand. Less than half (48%) of British importers showed confidence in current economic conditions. Importersâ optimism in future trade also fell to a four month low.
Mr. Sear commented: âAt the moment, Britainâs trade community is divided into two camps; exporters who are confident that they can drive economic growth, and importers who are concerned about the impact the VAT hike will have on consumer spending. The hope is that any economic growth provided by rising exports will improve British consumer confidence, encouraging them to spend once again. This in turn should improve the sentiment of UK importers.â