Reacting to the latest ONS trade data, William Bain, Head of Trade Policy at the British Chambers of Commerce, said:
“July’s improved export performance was not sustained in August, and for goods trade it almost completely reversed. Looking at the three-month picture, goods exports also fell, with the EU seeing the biggest drop.
“Services trade was steady, but growth was slow in August and flat across the three months. It is concerning that, while there is evidence the economy is proving robust, trade is falling behind, especially around overseas goods sales.
“As we enter into the decisive Christmas sales period for Britain’s exporters, we need the Government to step up to the plate.
“It must provide a level playing field for export support across England through targeted investment.
“Business also needs to see more effort put into getting the most out of the trade deals we have, with India, CPTPP and other partners. That means backing private sector initiatives like the BCC’s Trade Accelerator scheme.
“Next month’s UK-EU Leaders’ Summit is also a golden opportunity to deliver deals on animal and plant products, Emissions Trading Scheme linkage and youth experience. These could cut costs and red tape, restore market access, and help boost trade for hard-pressed British firms.”
Detailed Analysis:
Goods exports and imports in August
Exports fell in volume by 2.8% in August compared with a 3.5% rise in July. The 7.2% increase in EU exports from July was almost entirely erased with a 7.1% fall. The volume of goods sales to the rest of the world continued on a low trajectory, with a 1% rise in August, following a flat July.
Imports decreased by 2.5% in volume terms in August, reversing the 2.1% rise in July. A 4.2% rise in non-EU imports in July was more than reversed by a 6.7% decline. EU goods imports increased by 1.6% in August, compared with a flat July.
Services exports and imports in August
Services exports rose in volume by 0.5% in August, matching July’s growth. Imports rose by 0.35% in August, which was half the rate of July’s growth.
The rolling three-month picture
The value of UK goods exports fell by 0.5% in the three months to end of August. There was a 3.5% fall in goods exports to the EU, and a 2.3% increase to the rest of the world.
By contrast, the value of goods imports rose by 1.2%. This broke down into a 0.4% fall in goods imports from the EU, and a 2.9% increase from the rest of the world.
Exports of services were estimated to have risen by 1.4% in value in the three months period. Whereas imports rose by 0.9% on the same measure.
More detail on the ONS data can be found here.