September ONS figures, UK trade slows, exports thrive as the pound depreciates
Markus Kuger, senior economist, Dun & Bradstreet, said:
“September’s ONS figures show that UK trade has slowed following the uncertainty of Brexit and worldwide political change. Between Q2 and Q3 the total trade figures for goods and services dropped by £1.6bn to £11bn. The £4.5bn (6.1%) increase in exporting of goods is a reflection of the depreciating pound, caused by the high level of uncertainty and the BoE’s decision to lower interest rates to 0.25% in August. Dun & Bradstreet’s own country insight report downgraded the UK economy last month, ranking it joint second-worst among G7 powers.
“It’s paramount that the British economy continues to function, and businesses should call on data and technology to identify the smart areas of growth that help find economic stability. Opportunity still remains: the most recent GDP figures pinpointed that the UK economy beat economists’ forecast although the overall outlook still deteriorated slightly. As the pound will remain weak for the foreseeable future, exporters to the country will have to overcome importers’ resistance to accept higher prices. Ensuring the necessary risk solutions are in place couldn’t be more vital and a careful assessment must be made before any business decision is taken forward.”