Rising pound puts exporters at risk
Page 8
If you've noticed an error in this article please click here to report it so we can fix it.
by Ian Wylie • Hauliers who are over-reliant on international contracts will soon be feeling the chill of recession again, according to several surveys published this week.
The National Institute of Economic and Social Research, which has one of the best track records in the forecasting busi ness, warns of a risk of recession next year if the value of the pound continues to rise.
The NIESR claims there are alarming similarities with the early years of the Thatcher Government, when companies were plunged into the deepest recession since the war.
The warning is echoed by the British Chambers of Commerce quarterly survey of more than 9,000 companies, which shows that the strength of sterling is now hurting distribution and haulage companies.
! Latest receivership figures from accountant KPMG reveal a 5"-0 increase in the number of companies appointing receivers during the last six months.
Firms in the wholesale distribution and transport sectors accounted for one in seven business failures since the beginning of the year, but KPMG says it expects an increasing failure rate among companies which rely on export markets.
"We see clouds on the horizon related to the exchange rate and anyone who serves manufacturers with export orders should brace themselves for a bumpy ride," says KPMG partner Steve James.