Over half (53%) of UK manufacturers say that fiscal tightening will have a damaging impact on their industry.
Weaker confidence surrounding economic and trade prospects
51% of importers and exporters fear a double dip is ‘likely’
Confidence in an export led recovery slumps. Only 38% now believe that a weak pound will lead to an export-driven recovery, compared to 53% in June
David Sear, Global Managing Director of Travelex Global Business Payments, comments:
"Manufacturers have had a good year, which we saw from last week’s manufacturing output data. However, there will be some major headwinds going forward and it’s worrying to see confidence in the sector at such a low. Our
ultimate concern is the impact the UK fiscal squeeze and the global slowdown will have on UK exporters over the long term.
"Spending cuts and tax hikes are likely to crimp economic activity for the foreseeable future and suggest that the UK’s impressive rate of growth will not be sustained over the second half of 2010.
This climate will make it extremely difficult for exporters to continue driving the recovery. "With public funding scaled back, the private sector will need to step forward to plug the gap.
They may require further support from the Bank of England in the form of quantitative easing, but ultimately, we believe that their support would be enough to avert a second recession."