Euler Hermes UK Exporters’ Report

May 2009

Global demand continued to fall but at a slower pace.

Key points

>Further sharp decline in global demand.
>Sterling remained relatively weak, providing
some support for exporters.
>Relative strength in BRIC economies had
limited positive impact.

Summary

April data signalled that trading conditions for UK
exporters remained difficult. Global activity
continued to fall sharply, despite some small signs
of improvement in underlying trends among the
UK’s main trading partners. However, the continued
weakness of sterling leaves exporters well placed
to benefit from a recovery when it materialises.
The Euler Hermes UK Exporters Index, compiled by
Markit, was broadly stable in April, posting 53.8
after registering 53.3 in March. Slower rates of
decline in business activity were generally recorded
across the globe, with major trading partners such
as the US and Eurozone both contracting at slower
rates. The value of sterling increased slightly during
the month, but remained weak overall, providing a
continuing boost to UK export competitiveness.

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08.05.09
>Global demand continued to fall but at a slower pace