Summertime blues for UK exporters: 24% say they exported less in June than last year

24% of UK companies doing business overseas exported less this June than in the same month last year, while just 16% reported an increase. Similarly, 18% of UK importers said they imported less this June than in 2023, compared to just 13% reporting an increase. The international delivery expert Parcelhero says increased costs and red tape are to blame.

The latest Office for National Statistics (ONS) Business Insights report reveals a summer wobble for UK exporters. 24% of UK businesses employing 10 people or more that trade internationally said they exported less in June this year than during the same month in 2023. Exports remained steady for 45.7% of firms while just 16% of exporters reported an increase.

Similarly, 18% of companies doing business overseas said they imported less in June than in June 2023, while only 13% reported their imports increased.

The international delivery expert Parcelhero says many UK firms are still struggling to overcome the impact of Covid, Brexit and inflation.

Parcelhero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘UK exports weren’t set alight during Flaming June. What we were hoping to see by now was a steady uptick in exports, as the upheavals of Brexit and Covid gradually disappeared in the rear view mirror. Instead, June’s figures appear to be going backwards as far as many UK exporters are concerned.

‘Digging deeper into the ONS’ latest figures for the period 15-28 July this year, companies were asked, “Has your business had any extra costs directly related to changes in export regulations due to the end of the EU transition period?” 29.2% of all currently trading businesses employing more than ten people responded that their costs had increased but were now stable and a concerning 12% reported that their costs had increased and are still increasing.

‘For UK exporters of all sizes, 22.8% said the amount of time it took them to export goods, in terms of admin and preparation, had increased in June over the same month last year, compared to just 7.8% who reported the time spent on exports had decreased. This shows the impact of red tape is actually increasing for a significant number of companies rather than decreasing as new border legislation takes effect.

‘The situation is similarly concerning for UK importers. Interviewed between 15-28 July, 31.7% of importers said their costs had increased because of regulation changes at the end of the EU transition period but were now stable. A considerable 18.8% reported their costs had increased and were still increasing.

‘For importers of all sizes, 22.4% reported an increase in the amount of time spent on importing in June, in terms of paperwork, Customs problems, conformity and other issues, compared to the same month last year. Just 3.3% saw a decrease in the time they spent on importing. Whatever happened to Jacob Rees-Mogg’s broad, sunlit Brexit uplands?

‘While the EU market still represents some challenges, it’s interesting that UK exports to the USA reached £192bn in the four quarters to the end of Q1 2024. That’s an increase of 3.2% or £6bn compared to the four quarters to the end of Q1 2023. That’s despite the fact a UK-US trade agreement has never been negotiated. It’s small wonder that the US is also Parcelhero’s biggest individual overseas market. Sending a parcel to the USA is now no more difficult than shipping to the EU.