Slowdown impacts UK goods trade because of cost constraints…

The UK goods trade fell in September due to higher inflation and lower global consumer spending, according to statistics from the Office for National Statistics (ONS).

Imports

Total UK imports of goods, excluding precious metals, decreased by 5% (£2.8 billion) in September, with EU imports declining by 7.3% (£1.9 billion) and non-EU imports declining by 3% (£0.9 billion). Removing the effect of inflation, overall imports of goods, excluding precious metals, decreased by 6.1% £2.6 (billion) in September.

One of the most significant declines in imports from the EU was in chemicals, which decreased by £0.7 billion.

The main factors behind the decline in imports from non-EU countries were primarily driven by a £1.3 billion drop in fuel imports, which was caused by falling gas imports from Norway and falling oil prices.

Exports

In September 2022, the total value of goods exported, excluding precious metals, fell by 4.7% (£1.6 billion), with exports to the EU falling by 5.1% (£0.9 billion) and exports to non-EU countries falling by 4.2% £0.7 billion. Removing the effect of inflation, overall exports of goods, excluding precious metals, decreased by 4.8% (£1.4 billion) in September.

The highest decreases in exports to the EU came from fuel exports, machinery and transport equipment (mostly to Germany).

Deficit

The overall trade deficit decreased by £1.3 billion to £23.7 billion in September, remaining relatively stable over the past nine months.

In Q3, the total value of UK goods exports increased by 3.2% while UK goods imports increased by 2%. Imports of machinery and transport equipment from the EU fell by £1.7 billion in the third quarter, while chemical imports fell by £1.4 billion.

In the same period, total service imports and exports both increased by 3.3%. Trade in pensions, travel, intellectual property and insurance services all remained strong in Q3.

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