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:
“Goods exports fared well in May with a 5.2% increase in volume, particularly in chemicals exports to the rest of the world. By comparison, goods exports to the EU rose more modestly across a variety of commodity lines.
“But sluggish trade in services is a deepening concern. In May, there was a static picture in exports accompanied by a 0.7% fall in imports. Looking at the past three months, services exports have now fallen into negative territory. In part, this is due to uncertainty and depressed orders caused by the war in Iran. As services representalmost three fifths of total UK exports, this is a worrying warning sign.
“The new government must focus on reducing trade barriers with the EU, getting the UK’s trade deal with the US fully across the line and forging new free trade deals in the Americas and Indo-Pacific.
“There must also be a renewed focus on export support so businesses can take full advantage of the new trade deal with India, and beyond. No part of the UK should be left behind when it comes to trade missions and access to quality advice on export.”
Detailed Analysis:
Good Exports
Goods exports increased by 5.2% in volume during May. There was a 7.7% increase in non-EU exports which was driven by higher chemicals sales (including chemicals and pharma exports to the US). Other drivers were machinery and transport goods. Exports to the EU saw a lower 2.6% increase.
Goods Imports
UK goods imports increased by 1.4% in volume during May. There was a 3.3% rise in non-EU imports, which was partially offset by a 0.4% fall in purchases from the EU. This was driven by declines in fuels (refined oil from the Netherlands), machinery and transport (cars from Germany).
The full ONS data can be found here.