LONDON, February 9, 2011 /PRNewswire/ -- British importers' growing concerns over sluggish domestic demand forced confidence in the economy to a two month low in January, according to the Travelex Confidence Index report released today.
Although the overall Travelex Confidence Index was stable at 106, confidence in the International Trade Index and Current Situation Index dropped three points from the previous month, driven by importers' negative attitudes to current and future economic conditions. Travelex Global Business Payments said that looming government spending cuts, as well as rising inflation, were responsible for the fall in importers' confidence.
In contrast, British exporters' attitudes to the economy remained fairly buoyant in January, with 67% expressing confidence in current economic conditions. Travelex said that this was consistent with last month's trade figures, which showed that excluding oil and erratic items, the volume of goods exports rose by 3.4% and the volume of goods imports rose by 0.3%, compared with October.
"It doesn't seem like British exporters are worrying about much at the moment, apart from the performance of their own business," comments David Sear, Managing Director at Travelex Global Business Payments. "Their recovery is well on track, bolstered by the resurgence of exports and the renewed political push for an export led recovery."
The report also provided an interesting snapshot into the opinions of British exporters and importers before news of the UK's shocking fourth quarter contraction. Travelex Global Business Payments revealed that businesses were fairly sanguine about sustainable economic growth prior to the data release. 61% of exporters and importers were confident that a double dip recession would be avoided. Sear comments, "UK GDP figures were undoubtedly disappointing - even with the wintry weather factored in. But in terms of growth figures for the first quarter of 2011, exporters' resilience is extremely encouraging."
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 beneficiaries
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 http://www.travelexbusiness.com/confidence-index
SOURCE Travelex Global Business Payments