UK’s importers and exporters are increasingly confident about the global economy, according to the latest HSBC Commercial Banking Trade Confidence Index.
Suggesting that the recovery is strengthening, trade confidence has grown by a third between the fourth quarter of 2009 and the first quarter of 2010.
Ninety-two percent of businesses taking part in the survey believe their trade volumes to stay the same or increase over the next six months, while 63% expect the global economy to grow in the next six months.
The index rates the outlook in emerging markets as 15% more positive than in developed markets.
The UK’s biggest trading partners are Western Europe, Central Europe, Germany, US/Canada and Greater China.
UK traders’ biggest worries for the next six months are fluctuating exchange rates, a lack of product demand and tight margins.
Unease over suppliers not honouring trade agreements has reduced over the last quarter, with stricter regulation (27%) cited as the most common reason, followed by the stabilisation of the global economy (14%) and improving financial health of suppliers (9%).
Our research has revealed the optimism of UK traders towards the opportunities that trading with Asia in particular will hold over the next six months, where they're moving from being seen as manufacturers to being consumers in their own right
Ian Tandy, HSBC UK Head of Trade and Supply Chain
Ian Tandy, HSBC UK Head of Trade and Supply Chain, says the most striking trend is how emerging markets are moving “from being seen as manufacturers to being consumers in their own right”.
“Our research has revealed the optimism of UK traders towards the opportunities that trading with Asia in particular will hold over the next six months,” he says “We believe this trend will continue in the coming years as the emerging markets move from being seen as manufacturers to being consumers in their own right.”
Tandy says that UK businesses need to be proactive in exploiting opportunities in emerging markets, but be vigilant about the potential risks.
“As emerging markets build their trade role around the world, it’s important that UK businesses capitalise on the trading opportunities they provide and use it to further develop their businesses and grow. Businesses who are looking to start trading across the world or expand their trading operations need to conduct an assessment of the risks associated with its trading partners including foreign exchange risks.”
