It pays to keep an eye on the economic indicators. After a long period of underperformance, there are signs that the economies of continental Europe are picking up. That should feed through to increased demand for UK goods and services.
News reports of changing economic indicators can seem a long way removed from the day-to-day priorities of running a business, but it pays to keep an eye on key trends as they can give you an early insight into changes in your market.
This is as true for exporters as it is for businesses selling within the UK—economic indicators provide a valuable source of market research for exporting businesses. Take the eurozone countries. They’ve been performing weakly in recent years, but 2006 has brought a steady stream of positive data. It looks like things may finally be picking up, for a time at least (analysts are divided as to how lasting the current upswing will be).
In the first half of 2006, the combined eurozone economy grew at its fastest rate for six years, expanding by 3.4 per cent. And while unemployment remains higher on the continent than in the UK, as many as five million new jobs have been created in the eurozone over the past five years.
These data aren’t just of academic interest. Improved growth rates in the eurozone means that more money is being spent there. Businesses are busier and therefore need more supplies, and consumers too have higher confidence and spending power. All of this amounts to a potential opportunity for UK businesses with an interest in selling into continental markets.
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