First quarter presents trouble for exporters - survey

The British Chambers of Commerce 's Trade Confidence Outlook for the first quarter of the year has underlined the gloom facing UK exporters in the first months after Brexit.

Shipping delays, red tape and the effect of the coronavirus pandemic are all being blamed for the fall in exports that has been felt across the board by UK businesses.

The survey of more than 2,900 UK exporters revealed that the percentage of firms reporting decreased export sales had increased to 41 per cent, up from 38 per cent in the previous quarter.

The percentage of businesses reporting increased export sales fell to 20 per cent, down from 22 per cent in Q4 2020. Forty per cent reported no change in their export sales.

The historical percentage balance data for this indicator shows that the proportion of firms reporting increased export sales remains at a historically low level and has, in fact, worsened compared to the previous quarter.

The balance of manufacturers reporting increased overseas sales was down to -9 per cent from -8 per cent, while for services firms there was a drop to -26 per cent from -22 per cent.

The survey found that hotels and catering firms and retail and wholesale firms have been the worst hit, with 81 per cent and 60 per cent of respondents respectively reporting a decrease in export sales this quarter.

Just four per cent of hotels and catering firms reported an increase in export sales, with only 14 per cent doing so in retail and wholesale.

Among production, manufacturing, and construction firms, 36 per cent reported decreased export sales, with 27 per cent reporting an increase, and 37 per cent reporting no change.

For advance orders from overseas customers, the picture remains broadly the same, which the Chamber said suggested that exporters were not seeing signs of the situation improving in the short term.

Respondents cited Brexit and the impact of Covid-19 as the biggest causes of problems in trade.

Firms told of issues such as shipping delays, increased cost of transporting goods and extensive paperwork requirements, with many seeing the problems they were facing as structural in nature rather than short term issues likely to alleviate as companies adjusted to the changes in the UK-EU trading relationship.

British Chamber 's co-executive director Hannah Essex (pictured) said:? “Given that export sales are at some of the lowest levels ever recorded in the history of our data, the fact that situation is continuing to deteriorate is concerning.

“These new figures show that UK exporters are currently facing a range of issues that go beyond just those that have been created by the pandemic. ”