Government urged to minimise trade disruption after decline in exports

A decline in exports for British companies during October reflects the weak economic growth in the EU and across the globe, business leaders said today.

And Greater Birmingham Chambers of Commerce is urging government to react by minimising disruption to trade.

It comes as latest Office for National Statistics (ONS) data revealed goods exports volumes fell by 0.3 per cent (£0.1bn).

Following the 3.4 per cent decline in goods exports volumes to the EU in September a further slump of 7 per cent occurred in October.

Drops in exports of chemicals, manufactured goods (including pharmaceuticals) and food were the main areas of decline in exports to the EU.  

Goods exports volumes to the rest of the world, outside the EU, rose by 6.2 per cent (£0.8bn), with increased sales of manufactured goods to India a leading cause, together with increased oil exports to China, and a rise in demand for chemicals.   

Overall goods imports volumes rose by 6.7 per cent (£2.5bn) due to a big rise in purchases of machinery and transport equipment.

On EU imports, car purchases from Germany were up in October and there were increases in levels of refined oil purchased from the Netherlands, Denmark and Sweden.  

Goods imports volumes from the rest of the world rose by 8.9 per cent (£1.4bn) in October driven largely by electrical machinery imports from China, increased fuel imports from Norway, chemicals from Canada and pharmaceutical products from Switzerland.  

On trade in services, import and export volumes both fell slightly. Import volumes fell by £0.1bn, while export volumes fell by £0.2bn.

On the current prices measure, there were similar falls in services import values of £0.1bn and in export values of £0.2bn over the month.   

Cameron Uppal (pictured), policy and public affairs advisor at Greater Birmingham Chambers of Commerce, said: “The latest ONS results underline the weak economic growth we are seeing both in the EU and across the globe.

“The latest data from our Quarterly Business Report reflect the challenges local exporters are facing, with activity falling compared to the previous quarter.

“Against this backdrop, it’s vital the Government reacts accordingly and continues minimise trade disruption and allow businesses to build closer ties with their overseas counterparts.”