The results of the Q2 2012 DHL/BCC Trade Confidence Index reflect that exporters are operating in a difficult environment.
This quarter’s index showed an increase in the number of firms reporting an increase in export orders, up from 39% in Q1 to +49% in Q2. However, many indicators showed that exporters are still operating in a challenging environment.
- Manufactures report a big increase in exchange rate concerns
- Export orders rise for service firms, but fall for manufacturers
- Overall, profitability expectations deteriorate
While overall export activity seems to be relatively buoyant, other indicators of domestic performance and employment intentions have weakened (although still do suggest expansion).
What is perhaps most surprising about the promising export numbers is that the fieldwork period for this survey was conducted during another negative turning point in the seemingly never-ending euro debt crisis. Greece had just completed inconclusive elections (the fieldwork was completed before the electoral re-run on 17 June), and Bankia, Spain’s fourth biggest bank, required a bailout.
But despite the broad export indicators delivering better than expected results, there were other signs in the bigger picture that suggested difficulties for internationally trading firms.
Full report: https://www.britishchambers.org.uk/policy-maker/policy-reports-and-public…
