Half of all SME exporters (49%) saw no change in overseas sales, and a quarter (25%) reported a decrease, according to the latest Trade Confidence Outlook produced by the British Chambers of Commerce (BCC).
With no improvement in the third quarter (Q3) of 2023, it is now almost five years (Q4 2018) since the proportion of firms reporting increased sales was higher than 30%.
A survey of more than 2000 UK SME exporters, the Outlook has revealed that exports continue to languish for many of these firms as the global economy remains under pressure.
BCC Head of Trade Policy, William Bain, said: “The picture for global economy was already looking weak for the year ahead, but with the escalation of conflict in the Middle East, it is now even more uncertain. The reality is if UK business is to thrive, then we must export more, it’s as simple as that. If we want to remain one of the world’s largest economies, then we need more firms selling goods and services internationally”.
The proportion of all businesses surveyed reporting decreased sales began to worsen in the run up to Brexit and has remained stubbornly higher ever since, he highlighted. The situation is most volatile for SME manufacturers, with 28% reporting a decrease in exports, 27% an increase, and 45% no change.
Firms need to look again at ways of improving trade with the EU, Mr Bain emphasised.
“It is still our biggest trading partner, but firms continue to express huge frustration with the complexity and costs involved — which go beyond what they face elsewhere,” he concluded.
