Third Quarter UK Exports Drop To 6 Year Lows
Export growth during the three months prior of September dropped to their lowest since the financial crisis.
According to new data from The British Chambers of Commerce, UK exporters have seen the weakest growth in orders since the financial crisis in the period between June and September, showing signs that demand from oversees has started to drop.
The BCC said companies who completed their quarterly trade survey reported the least amounts of growth in overseas sales and orders since Q2 of 2009, when Britain was coming towards the end of its worst recession in years. Scotland was the only area of the UK which saw an increase in quarter-on-quarter trade performance.
John Longworth, Director General of the British Chambers of Commerce said “These figures make it clear that the UK’s export drive is at risk of going into reverse gear, precisely at the time when it needs to be moving forward.”
The survey of 1,257 businesses was undertaken between August 24th and September 14th and shows a similar trend as a report from the Confederation of British Industry, this survey showed manufacturers reported the biggest fall in orders in three years.
However, there is a sign that there may be a rebound, more recent information from the Markit/CIPS UK manufacturing Purchasing Managers’ Index (PMI) yesterday recorded a measure of 55.5 in October, an improvement from 51.8 in September suggesting the drop may be temporary.
Phil Couchman, an executive from DHL which sponsored the BCC survey, said he believes the weaknesses are linked to uncertainty in the euro zone and economic instability in China and other emerging markets.
