LONDON: UK importers' and exporters' confidence rose in August but the business outlook remains challenging, according to Travelex Global Business Payments. With confidence in an export-led recovery falling for the second consecutive month, the international payments provider issued a rallying call to UK manufacturers, calling on them to drive exports through "quality, innovation and differentiation."

Whilst confidence had risen 7 points in August, Travelex said that fears of a U.S. slowdown had dented importers' and exporters' expectations, with the Expectations Index recording its slowest growth since March, moving only 2 points to 105 in August. It underlines importers' and exporters' increasing concerns that sluggish global growth may suffocate demand for UK exports.

"There are some signs that the UK economy is recovering as data has recently been much better than expected," comments David Sear, Global Managing Director at Travelex Global Business Payments. "Private consumption is increasing, government borrowing is falling and we're importing more and exporting less. Unfortunately, if the U.S. recovery does falter, it will affect UK exporters and our third quarter GDP figure. In this kind of climate, the onus is on UK manufacturing to drive our exports forward."

The index will add to the mounting concern that the U.S. slowdown may impact the UK's export led recovery. As the U.S. is a critical export market for the UK, it is likely that ongoing uncertainty in the U.S. will be felt keenly in the UK and elsewhere in the global financial markets.

Of the importers and exporters interviewed, Travelex Global Business Payments found that 82% of them cited the health of the global economy as the biggest threat to their business' development. Sear says, "New reports suggest that the global recovery is losing traction and this has clearly been playing on the minds of importers and exporters."

Notes to editors

To receive a copy of the Confidence Index report, please contact Jessica.buttress@travelex.com

About Travelex Global Business Payments

Travelex Global Business Payments is a global foreign exchange specialist providing the payment and receipt of domestic and international funds for businesses of all sizes. For more than 30 years, Travelex Global Business Payments has provided clients with sophisticated market knowledge, leading edge technologies and practical and innovative solutions tailored to individual requirements. Every year, Travelex Global Business Payments processes payments around the world over 35,000 businesses to 1 million beneficiaries

The Travelex Confidence Index (TCI), released monthly by Travelex Global Business Payments, provides commentators with a key indicator on international trade and economic conditions. Conducted by independent research company TNS-RI, the Travelex Confidence Index tracks the views and sentiments of the UK's SME importers and exporters across industry sectors and UK regions. The TCI is the only piece of research available that regularly tracks the UK's SME importers and exporters. Visit http://www.travelexbusiness.com/confidence-index

    
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    Jessica Buttress
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    Jessica.buttress@travelex.com