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UK Manufacturers Benefit From Weak Pound

News Desk — Tue, 26 Feb 2008 13:58:35 +0000

Foreign exchange specialists Moneycorp, claims that Sterling’s record low against the Euro is boosting exports for Britain’s manufacturers in key markets.

With growing inflationary pressure evident for many manufacturers over recent months, favourable exchange rates are providing some welcome relief for exporters.

Moneycorp reports a marked increase in the number of exporters selling Euros to purchase Sterling, some even placing forward contracts to purchase more Sterling for later delivery.

The weakening of the pound could play a part in redressing somewhat the UK’s trade deficit. Since 1999 UK exports have grown just 20% while imports have grown 44% over the same period according to International Trade Commission statistics.

But like much on the foreign exchange markets, there are swings and there are roundabouts. As one exporter, Quentin Arnold of alternator manufacturer, Markon Sawafuji, puts it:

The one downside for us this year, as far as exchange rates are concerned, has been the weak Dollar. The US is also an important market for us and it has actually become quite difficult for us to sell there which speaks volumes for the effects that currency fluctuations can have on your business.

Retail Sales Growth Steady

News Desk — Thu, 21 Feb 2008 10:50:40 +0000

Figures released today by the Office of National Statistics show that retail sales volumes in the three month period November to January rose by 0.6% compared to 0.5% in the previous period.

This represents an increase of 4.1% compared to the same period 12 months ago. Surprising perhaps when one considers the apparently fragile state of the global economy.

It is likely that much of the growth recorded by the the ONS was stimulated by January sales on the high street. Consumers clearly taking advantage of bargains while they still can!

UK Trade Deficit Narrows – October 07

News Desk — Tue, 11 Dec 2007 22:14:41 +0000

The UK’s trade deficit has narrowed during October 2007 to £4.1 billion, down from £4.8 billion the previous month. Over the three month period ending October there has, however, been a widening of the overall trade deficit in goods and services.

Despite this widening, statisticians at the Office of National Statistics believe that the overall trend during 2007 is relatively flat.

The Financial Times today reported concerns expressed by some economists that a decline in imports from EU countries could signal a slowing consumer demand in the UK and a lack of confidence in the medium term economic outlook.

UK Fifth In Productivity Table

News Desk — Tue, 02 Oct 2007 14:27:34 +0000

International productivity statistics for 2006 have been released today showing the UK holds on to fifth place behind the USA, France, the G7 (average), and Italy.

The UK’s position in the table is unchanged on 2005 data.

Since 1991, however, the UK has recorded the fastest productivity growth of any of the G7 countries. The UK grew by 38% compared to 27% for the G7 average. This growth is accentuated if productivity is measured on a GDP per hour worked basis, with the UK recording an increase of productivity of 46%.

Small Business Research Finds Firms Confident

News Desk — Thu, 20 Sep 2007 15:00:52 +0000

In its latest quarterly survey the Small Enterprise Research Team finds UK firms resilient in the face of potential economic storm clouds precipitated by the sub-prime mortgage crisis and credit crunch.

All sectors apart from retailers and transport firms reported positive annual percentage of sales over falls (16%) and expected the balance to rise to 20% in the third quarter of the year.

Around 11% of 528 small business respondents said that the future stability of the economy was a major concern, but the survey was carried out ahead of the most recent vicissitudes in the market and the run on Northern Rock.