September 23 2016.

UK businesses that import either raw materials or finished goods have seen the prices they pay their foreign suppliers rise since the Brexit referendum on June the 23rd, and the subsequent weak pound. But small and medium-sized enterprises (SMEs) have been hit hardest, with many having to curtail their imports in response to the spike in prices, according to figures compiled by foreign exchange specialist FEXCO Corporate Payments.

The study finds that in July, the total number of foreign currency purchases made by SMEs was a relatively modest 7 per cent down on the same time last year. However, the average transaction size was 29 per cent less than in July 2015 as companies sought to rein in spending.

In August the picture had recovered a little, with the number of foreign currency purchases made just 5 per cent lower than it was in August 2015, with the average transaction size 11 per cent lower. However, two successive months of reduced import spending suggests that SMEs are growing increasingly wary of importing.

By contrast the number of .....

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