International trade to boost UK, says DHL
New research by DHL Express has revealed that the UK economy is to get a boost from an increase in international trade over the next three months.
Almost half (47%) of UK manufacturers which import and export expect overseas demand for their products to grow in this period and 43% expect export demand to remain constant.
These figures are supported by ONS Trade in Goods and Services data which show that in the past year exports grew by 11.5% and imports grew by 11.7%. In addition, 75% of imports and 77% of exports in the past year were manufactured goods.
While the insights from businesses revealed an overall positive outlook for UK plc internationally, six out of ten (65%) believe that keeping interest rates at half a per cent is key to economic growth.
Of those manufacturers anticipating export growth 25% expect this to come from the US and 12% expect this to come from France and Germany respectively.
Almost eight out of ten (78%) businesses across all sectors surveyed believe that the resurgence of the manufacturing industry would stimulate the economy and four out of ten (40%) believe the manufacturing sector will see growth in the next three months.
When asked about their trading confidence almost six out of ten (57%) manufacturing respondents said they were optimistic about trading conditions for the next three months.
More than six out of ten (65%) said they expect sales growth in 2011 and 59% anticipate profit growth. Half (51%) also believe that the 2012 Olympics will create a greater global demand for British goods.
Manufacturing exporters are bullish about overseas demand for their products. Half (47%) expect exports to grow and expect this demand to come from the US, France and Germany respectively.
The picture for imports is also solid. In 2010, 29% of manufacturing importers increased imports and 32% expect to import more over the next three months.
The overall picture for imports – and exports in particular – looks rosy, but manufacturing companies indicated that they aren’t resting on their laurels because of ever-present competitive threats from businesses in China, Germany and the US.
While the survey revealed a positive outlook, many businesses believe that the UK could adopt a host of other key measures to further boost international trade: 80% would like to see the manufacturing sector incentivised; 62% want to see a loosening of the business tax regime; and 57% want to keep sterling weaker than it has been historically.
Phil Couchman, CEO, DHL Express UK and Ireland said: “The international express market is recovering after a turbulent period caused by the financial crisis; businesses altered their trading patterns over the past few years to cut costs which had a direct effect on shipments.
“Despite the weak economic conditions, last year saw the amount of international shipments handled by DHL Express grow strongly. This is supported by ONS Trade in Goods and Services data which show that in the past year exports grew by 11.5% and imports grew by 11.7%.
“It’s extremely promising to see UK businesses are confident about their future – more than half surveyed felt optimistic about 2011; and 56 % anticipate profit growth.
“Home grown businesses are vital to the UK economy; and DHL Express provides them with the vital link to the rest of the world.
“As the market leader in shipping goods internationally, DHL Express has a wealth of local knowledge across the globe. We have the widest global network and ship more international packages than any other express supplier; working across more than 220 countries with around 300,000 employees worldwide. We offer customers superior service and provide international expertise to help businesses who are looking to begin exporting.”
