Sign in Subscribe
United Kingdom

Britain's Small Business Exporters Turn to Non-EU Markets

Strategic Insights

— 1 min read

Research by NatWest has revealed that small business exporters in Britain are increasingly turning away from the European Union, with a majority of firms questioning the prospects for trade within the Continent. The bank's survey of 500 firms suggests that the decline of the euro and turmoil in the Tiger economies have contributed to a loss of faith in European markets. Instead, firms are looking to North America, where a booming economy and favourable exchange rates offer more stable prospects for the future.

Key Takeaways:

  • 500 firms were surveyed by NatWest, with a majority expressing pessimism towards the European Union as a whole and Germany in particular.
  • North America is the only market where export prospects have improved over the last year, with a clear majority of firms believing this to be the case.
  • The UK and Pacific Rim economies are the most out-of-favour, with prospects for these markets down according to the research.
  • Export performance in general has improved for the second survey in succession, with almost a third of exporters reporting an increase in exports over the last year.
  • The balance of exporters reporting higher overseas sales has risen from minus 20 per cent to minus five per cent, indicating a slight improvement in confidence.
  • Firms in the Midlands, especially manufacturers of capital goods, were least likely to report an increase in export sales.
  • A balance of UK exporters are now more optimistic about their export prospects for the first time in two years, reflecting increased confidence in markets outside the EU.
  • Profitability remains down, despite the improved export performance.

Statistics:

  • Almost a third of exporters (32%) report an increase in exports over the last year.
  • The balance of exporters reporting higher overseas sales has risen from minus 20 per cent to minus five per cent.
  • 64% of firms believe that North America is the only market where export prospects have improved over the last year.
  • 20% of firms in the Midlands reported an increase in export sales, the lowest percentage among all regions.
  • 50% of manufacturers of capital goods in the Midlands reported a decrease in export sales.

Sources:

  • NatWest research cited in The Financial Times, exact date not specified.
  • The Financial Times, exact date not specified.

Read more