Signs are optimistic despite fall in exports

Goods exports in the three months to February 2014 were down £1.8bn, or 2.5pc, on the preceding three months. Looking at the most recent data in depth shows that this decline has been relatively widespread across commodity types and geographical areas.

Exports have not been the only falling trade measure, goods imports show a similar trend path over the past six months. If there is a crumb of comfort to be had from these figures, it is that imports have been falling faster than exports, resulting in the trade deficit shrinking.

However, a turnaround should be on the cards because manufacturers are starting to be more optimistic about their export opportunities. EEF’s latest Business Trends Survey shows manufacturers’ expectations of future export orders reached record high levels in the first quarter of this year.

But there is no room to just wait and see. These trade data reinforce the message that the Government must continue to do all it can to support UK exporters. Last week’s Export Week, involving a series of seminars, trade workshops, targeted market days, intellectual property and marketing workshops held around the country, provided a great source of information and support to businesses looking to export, or export to new markets.

These types of events and support targeted at areas where companies feel they need help will be an important part of boosting the UK’s exports towards the stretching target of £1 trillion by 2020.

Rachel Pettigrew is a senior economist at EEF, the manufacturers’ organisation

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