Export Confidence Grows, says business leaders

- Europe seen as most promising exports market -

1 August 2005

UK export prospects for the coming months are looking healthy but British exporters still face increasing challenges, according to a report issued today by the Institute of Directors (IoD).

More than 8 out of 10 company bosses (82%) predict that export growth performance will either remain steady or strengthen throughout the rest of 2005. Of these, well over half (59%) predict stronger growth in their export business over the coming months, with the greatest prospects identified in European markets (64%), followed by American (46%) and Asian markets, including China (44%). However, the principal obstacles experienced by exporters over the last year have been the comparative weakness of the US dollar and euro against the pound, together with the growing intensity of international competition.

Richard Wilson, Head of Business Policy at the Institute of Directors, said:

"Our members realise the significant market potential abroad to increasing profits and turnover. However, as global competition is increasingly fierce, our country's exporters are under mounting pressure to keep up with foreign markets, particularly rapidly developing markets such as China and India.

"The other key obstacle currently facing exporters is the relative strength of sterling against the dollar and the euro. In light of this, individual businesses have to continue to improve the quality and innovation behind their goods and services and market them successfully."
 
The report, based on a survey of 500 IoD members conducted by NOP, presents the views of company bosses on their businesses' tendency to export, export performance and the difficulties they face in selling goods and services abroad. Exports comprise 25.2% of UK Gross Domestic Product (GDP). Whilst the vast majority of Britain's four million firms trade simply in the UK, a high proportion of IoD members (41%) run businesses that export from our shores.

Richard Wilson, said:

"The Government can assist exporters by maintaining stable economic growth and promoting competition at home. We believe that one of the Government's priorities should be to prise open overseas markets to trade - especially in services - in order to benefit UK exporters, their employees and the global marketplace."