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Trade confidence hits an eight month high

Trade confidence hits an eight month high

Category: Economy

Updated: 07/12/2010
First Published: 07/12/2010

MONEYFACTS ARCHIVE
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There is a growing belief that UK trade will improve in the next 12 months, as confidence has reached an eight month high in the market.

Seven in ten businesses were found to be confident about the current trade conditions, as both importers and exporters showed increased confidence in UK Government policies.

Findings from the Travelex Confidence Index also show that importers and exporters are confident that economic growth will be sustained.

The figures will come as a boost to the Government and will boost their argument that the measures taken after the coalition took power were the correct ones.

There is hope that 2010 will end with a trade bang, as three in ten importers and exporters said they expect the UK economy to expand by 0.5% in the final three months of the year.

Expectations for the future were also at the most positive level for six months.

Almost seven in ten (68%) businesses said they were confident that trade will grow in 2011.

In addition, there appears to be a growing consensus that the risk of a double dip recession has eased.

Figures out earlier this week showed the manufacturing sector was enjoying a sustained period of growth and is actually expanding at a greater rate than the wider economy.

"Trade confidence has returned. Importers and exporters played a large part in the UK's strong growth in the third quarter, and this may have helped to boost confidence going forwards," commented David Seur, global managing director of Travelex Global Business Payments.

"Their confidence will be good news for the Office for Budget Responsibility which has presented some bullish trade forecasts for 2011.

"There are growing signs that the UK economy is heading in the right direction and businesses are clearly growing in confidence."

These figures come just two days before the Monetary Policy Committee announces its monthly decision on the base rate of interest, and just days after the British Chambers of Commerce revised its growth figures for 2011 and 2012.

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