Capital top for exports but investment is hit

London businesses are leading the country's export push, but firms remain reluctant to invest amid worries over Europe's debt crisis and a weak UK recovery, a new survey warned today.

The first Trade Confidence Index from the British Chambers of Commerce and DHL, which compiles data from over 1000 firms, found companies in the capital registered more than 30,000 goods exports between April and June - easily the most of any UK region. The South-East was next highest with 25,000.

But the current turbulence is affecting spending decisions, the survey showed. Plans to invest in plant and machinery have recovered slightly since the recession, but remain weak by long-term standards.

Exporters are also showing less willingness to invest now than in the first three months of 2008, just before the recession struck.
DHL sales director Neil Kuschel said: "We need to shore up confidence in this community and ensure they are supported in tapping into... other markets."

BCC director-general David Frost added: "An uncertain economic outlook, with concerns surrounding eurozone debt and a fragile UK recovery, means many businesses are holding back on investment decisions - despite strong export sales and orders in recent months.