South East: Exporters 'more confident' despite looming Brexit deadline

A growing number of South East exporters expect their ability to compete in international markets to improve over the next year, according to the latest Business in Britain report from Lloyds Bank.

62% of exporters in the region expect their ability to compete in international markets to improve in the next 12 months, 12 points higher than six months ago. 

46% said they had seen their overseas sales grow over the past six months, compared with just 22% who said they had fallen.

38% of exporters said sales to Europe had grown during the same period. 34% said they had grown trade with the USA and 22% had increased sales to China. 

And despite facing continued uncertainty, 46% expect their overseas sales to increase over the next six months, compared with just 18% that expected international sales to fall.

The good news comes as the latest data from ONS revealed the value of British exports hit a record £621 billion in the 12 months to June 2018, with service exports rising 2.2% to an all-time high of £278b and exports of goods climbing 6.3% to £343b.  

Stephen Hand, area director for London and the South at Lloyds Bank Global Transaction Banking, said: “We have to recognise that the Brexit negotiations can affect how businesses are feeling and this can change.

“But it’s heartening to see that a large number of South East exporters demonstrate confidence towards their trade prospects, especially in light of continued domestic and international uncertainty.

“However, while the ongoing negotiations around the UK’s departure from the EU and its potential impact are an important point on most businesses’ agendas, its maybe a case for concern that 26% of South East exporters may not have reviewed their own strategy since the referendum two years ago.

“It may be difficult to plan whilst there is uncertainty over the nature of the UK’s departure, but there is little doubt that businesses will face some degree of change in the months and years ahead. All exporters should be taking proactive measures in the interim to prepare for that.”

The Business in Britain report, now in its 26^th year, gathers the views of more than 1,500 UK companies, predominantly small to medium-sized businesses, on a range of issues facing them.