64% Of Businesses Didn’t Make A Foreign Currency Transaction In Q1 2017

UK firms transferred 17% less on average per currency transaction in Q1 2017 compared to Q4 2016 – a fall from £48,000 to just £39,000

64% Of Businesses Didn’t Make A Foreign Currency Transaction In Q1 2017

64% of UK small businesses failed to make a single foreign currency transaction in Q1 2017, as international trading begins to slow down -according to a report by World’s First.

The Global Trade Barometer has revealed that UK businesses transferred 17% less on average per currency transaction in Q1 2017 compared to Q4 2016 – a fall from £48,000 to just £39,000.

% of small businesses not making a foreign currency transfer

Q1 2016 27%
Q2 2016 31%
Q3 2016 33%
Q4 2016 28%
Q1 2017 64%
   

Current political and economic uncertainty appears to be compounding matters, with 30% of respondents saying they’ve felt the negative impact of exchange rate movements in the last quarter.

Moreover, 22% admit their worried about rises in inflation negatively impacting their business, with the same proportion concerned about over a drop in consumer spending.

Top five business concerns shared by UK small businesses

Rise in inflation 22%
Fall in consumer spending 22%
Currency volatility 19%
Change in government policies 18%
Increase in business rates 16%

 

Jeremy Cook, chief economist at World First, said:

“The volatility of foreign exchange markets over the past twelve months, combined with the political and economic uncertainty has made the task of approaching foreign exchange markets with clarity and confidence even more difficult.

“Rather than address the issue of currency volatility, many small businesses seem to be burying their heads in the sand. The lack of forward planning amongst small businesses is leaving them susceptible to future shocks that could have a significant impact to their bottom line – we only need to look towards June’s UK general election as another potential flash point.”

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>