UK Goods Trade struggling for impact

Responding to the latest ONS Trade figures, William Bain, Head of Trade Policy at the British Chambers of Commerce, said:

“The first quarter of 2024 shows the challenges UK goods exporters face, with a further drop in sales to both EU and non-EU markets, despite a brighter global economic picture.

“Services remain the good news story on UK export performance, with travel and other transport provisions, providing the impetus for a decent 1.1% increase across the quarter.

“But we need further action from policymakers to reverse recent declines in trade in goods. This means a focus on digital trade and more efficient customs processes to cut costs.

“Other steps include removing some of the trade frictions with Europe, completing free trade agreements already underway, and working with business to get more value for exporters out of our existing deals.

The UK Trade Picture In Detail

Goods Imports

Overall goods imports volumes were down by 2.8% (£1.1bn) from February to March. Imports from the EU fell by 5.3% (£1.2bn).

Goods Exports

Export values to the EU fell by 3.5% (£1.6bn) during Q1 2024 after removing inflation. Non-EU goods exports fell by a lower amount – 1.6% (£0.7bn) over the same period.

An overall fall of 0.3% (£0.1bn) was reported for UK goods exports volumes in March, with a 0.9% (£0.1bn) rise in sales to the EU being offset by a 1.4% (£0.2bn) fall in exports to the rest of the world.

Services

In Q1, UK services exports values, adjusted for inflation, increased by 1.1% (£1.3bn). Services import values by contrast fell by 0.4% over Q1 2024.