Trade data corroborates mixed GDP report as new trade minister sets out negotiations agenda
This morning’s ONS trade data showed that the value of goods imports increased by £3.3bn (7.1%) in June 2024, with a rise in imports from both EU and non-EU countries. The value of goods exports rose by £2.3bn (7.6%) in June 2024, with an increase in exports to both EU and non-EU countries.
The total goods and services trade deficit widened by £7.1bn to £13.3bn in Quarter 2 (Apr to June) 2024, because of an increase in imports of goods.
The increase in imports of goods in Quarter 2 2024 was driven by a rise in imports of machinery and transport equipment from both EU and non-EU countries, as well as a rise in fuel imports from non-EU countries.
It follows this morning’s GDP report which found that there was a no growth in June 2024, following unrevised growth of 0.4% in May 2024. However, there was a 0.6% uptick between April and June this year.
George Roberts, head of dealing at global financial services firm Ebury, said: “UK trade data for June signals both promising opportunities and underlying challenges for UK exporters.
“The new trade minister Douglas Alexander’s commitment to reviving negotiations with India and the Gulf states, along with leaving the door open for a US free trade deal, indicates a strong push towards expanding the UK’s global trade footprint. Additionally, last month’s signing of the WTO’s first global digital trade agreement stands to streamline operations and enhance the UK’s competitiveness in international markets.”
“Labour’s pledge to improve trade-relations with the EU and reduce regulatory burdens could also bolster exports, particularly in agriculture and food products, making it easier for UK businesses to access European markets.
“However, these positive developments are tempered by some concerns. For example, rising tensions between Iran and Israel could create volatility in international markets, affecting trade flows and currency stability.
“UK exporters must remain agile. Implementing robust hedging strategies will be crucial to mitigate risks associated with currency fluctuations and international trade disruptions, ensuring they can weather any upcoming volatility and continue to thrive in a rapidly evolving global market.”
