UK export growth tumbles to lowest level since Brexit vote
UK export growth fell for the sixth consecutive quarter to its lowest level since the Brexit vote, it has been revealed today.
A study by accountancy and business advice firm BDO found that export growth in the UK had “slowed significantly”, performing the worst out of Europe’s five largest economies – placed behind Germany, France, Italy and Spain.
The figure has now plummeted consistently since the beginning of last year – falling a total of 15.8 index points since Q1 2017 – according to the company’s European Export Index, which was released today.
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The fall is driven by the rising price of UK exports prompted by uncertainty around Brexit negotiations. BDO pointed to caution and cuts emanating from British car manufacturers, who make up the UK’s largest exports industry.
Research found that other European exporters had experienced only a “slight cooling” in orders.
The UK’s export index dropped to 95.6 in Q3 2018, from 97.6 in the last quarter. Expectation of long-term growth is represented by the average score of 100, which is calculated using a combination of surveys and hard data. BDO said the UK’s continued drop saw it “creeping closer to the point of contraction”, which stands at a score of 95.
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Peter Hemington, a partner at BDO, said: “UK export growth is on a downwards trajectory and has now hit its lowest level since the UK decided to leave the EU. With party conference season upon us, we need clarity on the shape of Britain’s future trading arrangements so that UK exporters can prepare for the future with confidence.
“A rise in the proportion of British companies which export goods and services is also vital, spurred by meaningful government support and an ambitious industrial strategy which has exporting at its core.”