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Economic Factors affecting Business- Part 2

Here is a short series looking at economic factors that have an impact on business, elements that are beyond the control of your business which you should be aware of - and keeping an eye on. There are also a few links to information sources.

Part 2 - Exchange Rates

If you run a business and don't import or export goods you may think that this does not effect you. It will. Maybe not in the same way that a manufacturer using imported goods but the effect ripples through the business network.

Minor fluctuations happen every day but more significant swings can quickly create an impact. The graph above looks at the Euro against the pound from August 2018 to August 2019. The sustained drop from May has impacted on the cost of imports and exports in a detrimental way to businesses based here.

It is not all negative though, the UK became a cheap place for holidays and the tourism sector have seen a late rush of accommodation bookings, increased spend in restaurants, pubs, attractions etc. With tourism in the East of England worth £10 billion the money is not insignificant.

The Bank of England website has all the data at your fingertips.

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