BCC: Boost SME export support to navigate uncertainty

Tuesday 1 November 2016

The latest Quarterly International Trade Outlook is published today, Tuesday 1 November.

On the day that trade experts from Chambers of Commerce at home and in overseas markets across the world gather for the BCC Global Business Network conference, the British Chambers of Commerce, in partnership with DHL, publishes its latest Quarterly International Trade Outlook, which indicates that uncertainty following the vote to leave the European Union is slowing down export orders in the services sector.

The services sector saw a slowdown in growth, with the balance of businesses in the sector expecting an improvement in sales and orders also falling to its lowest level in five years.

In contrast, the report also shows that a greater proportion of manufacturers enjoyed an improved export performance compared with the second quarter, with some benefiting from sterling’s recent fall. This is also replicated in an improvement to the sector’s future orders.

The report’s Trade Confidence Index, which measures the volume of trade documentation issued by accredited Chambers of Commerce, fell by 4.14 per cent on the quarter – following the surge of documentation issued before the EU referendum – but remains 5.32 per cent up on the same quarter of 2015.

The results show that exports are expected to grow at a slower pace in the coming months, and confidence in turnover and profitability has also fallen in the medium term. The BCC calls on the government to use the Autumn Statement to increase resources to directly support SME export plans, providing direct monetary support for firms to explore new markets or deepen sales abroad.

Commenting on the findings, Adam Marshall, BCC Director General, said: “While factors including the weaker pound have benefited manufacturers when it comes to exporting, the services sector continues to face challenges. The decline in export orders in the services sector is concerning considering the sector is by far the largest part of the economy.

“Our data suggests that slower growth is likely to come in the months ahead. However, it is important to note that while the UK’s economic growth may slow further, we are unlikely to enter a recession.

“To fire up the animal spirits of our exporters, and boost business confidence, the Chancellor should use the Autumn Statement to improve direct financial support for firms looking to access new markets without bureaucracy or delay. Enabling businesses to attend trade missions, trade fairs, commission market research or make themselves export ready would be a shot in the arm for our trade performance at a time of uncertainty.”

Phil Couchman, CEO, DHL Express UK, said: “As the EU referendum approached there was an underlying sense of uncertainty on the part of British businesses and, despite a strong Trade Confidence Index against last year, this latest report shows that that feeling still exists – even amongst the manufacturing exporters currently enjoying the UK’s increased global competitiveness as a result fall in the value of the pound.

“Businesses are now seeking advice and reassurance about getting their goods and services overseas and it is important that businesses and government work together as EU negotiations progress. At DHL, we will continue to leverage our strength in navigating complex customs processes to encourage the UK’s exporters to be confident in their ability to grow and succeed internationally.”

Forthcoming Events

July 24 2019 6:00PM / 6.00-9.00pm
Fenland Quiz and Hog Roast
August 9 2019 2:00PM / 2.00 - 4.00pm
Summer Garden Party
September 2 2019 / 5.00-7.00pm
Informal Networking Evening – Huntingdon
September 4 2019 / 5.00-7.00pm
Informal Networking Evening – Stamford
September 9 2019 / 5.00-7.00pm
Informal Networking Evening – Ely
September 10 2019 3:00PM / 3.00-5.30pm
Meet the Neighbours - Stansted
September 17 2019 9:30AM / 9.30am-12.00pm
War for Talent: Recruitment and Retention - Huntingdon