Commenting on the latest trade data released by the Office for National Statistics, William Bain, Head of Trade Policy at the British Chambers of Commerce, said:
“March was a particularly strong month for trade in fuels as countries looked to build up reserves as the Iran war escalated. But, overall, UK goods export activity declined, and services trade was also weak.
“In the first quarter, it is a concern that services exports fell by 0.5%, again the Middle East conflict was a likely factor as travel was particularly affected.
“While goods exports in Q1 to the EU rose in value terms by over 6%, non-EU goods exports fell by nearly 1%.
“A shaky global economy, due to sustained geopolitical uncertainty, has created a difficult backdrop for the UK’s exporters and importers. But focusing on the structural barriers can improve trade going forward.
“This means forging a stronger economic relationship with the EU and implementing the trade deal with the US in full.
“The government should also be looking to negotiate new trade deals, provide better export support, and further develop trade accelerators in key markets.”
Detailed analysis
Fuel imports from the EU and non-EU countries rose significantly in March – by £0.5bn and £1.3bn respectively. Exports of fuels to the EU grew by £0.6bn month on month.
UK services exports grew by 0.2% in March compared with February ex-inflation, whereas services imports to the UK remained static.
The volume of goods exports fell by 0.8% in March, with drops in exports to the EU and rest of the world of 0.8% apiece.
Across Q1 2026, goods exports to the EU rose by 6.2% in value terms, with imports up by 2.5%. Non-EU goods exports fell by 0.9%, although imports rose by 5.9%. Services exports declined by 0.5% during Q1, with imports flat across the quarter.
More information on the ONS data can be found here.