UK's goods exports to EU suffer 6.8% slump in May 2023

Overall goods imports volumes rose by 5.9 per cent in May, after removing inflationary effects. Goods exports volumes fell by 3.2 per cent, with declines in both the EU at 4.9 per cent and the rest of the world at 1.5 per cent, the British Chambers of Commerce (BCC) said in a press release.

For the EU, goods imports volumes, excluding inflation, rose by 4.1 per cent, offset by lower fuel imports, particularly refined oil from the Netherlands. Non-EU goods exports fell by 2.1 per cent in May, led by falls in fuel exports but non-EU goods imports volumes, after removing inflation, rose by 8.3 per cent.

The UK trade deficit rose during May but narrowed to £18.2 billion in the three months to the end of May. Removing the effects of inflation, it fell to £12.2 billion by the end of May.

Reacting to the latest trade data from the Office of National Statistics (ONS), William Bain, head of trade policy at the BCC, said: “It is disappointing to see that April’s improved goods export performance was not sustained into May. While exports of financial, IT, and business services are holding up well, and are now finally above pre-pandemic levels, the picture for goods exports has so far been poor in 2023. With firms struggling to increase sales overseas, the recommendations in our newly launched Trade Manifesto have never been more relevant. We need to see an integration of trade, climate, and industrial policies, and a reboot of the Export Strategy, led by a performance-focused Exports Council.

“We must also use the range of other levers available to us to drive an export-led recovery focusing on the UK’s competitive strengths and future high growth sectors.”

ALCHEMPro News Desk (NB)