UK export picture remains mixed as services continue to provide support

The latest UK ONS trade figures present a mixed picture for exporters. While the value of goods exports increased during the second quarter of 2026, export volumes fell sharply in June and have shown little sustained growth over the past three years.

Services exports have performed more strongly over the longer term, highlighting both the resilience of the UK’s service economy and the ongoing challenges facing businesses that trade in goods.

Goods exports fall in June

Once the effect of inflation was removed, the volume of UK goods exports fell by 4.7% in June compared with the previous month.

Exports to the EU decreased by 5.6%, driven by lower sales of fuels, chemicals, machinery and transport equipment. This included falls in crude oil exports to Germany and Poland and pharmaceutical exports to Germany.

Exports to countries outside the EU fell by 3.8%, with lower exports of machinery and transport equipment, including cars to China and power generators to the United Arab Emirates.

Goods imports moved in the opposite direction, increasing by 1.1% in volume. This was mainly due to a 3.3% rise in imports from outside the EU, while imports from the EU fell by 0.8%.

UK services exports and imports remained broadly unchanged during the month.

A more positive picture across the quarter

The quarterly figures provide some more encouraging news. During the second quarter of 2026, the value of goods exports increased by 5.7%.

This included:

• A 5.3% increase in the value of goods exports to the EU
• A 6.1% increase in exports to the rest of the world
• A 1% rise in the value of services exports, led by business advisory and transport services

It is important to distinguish between the two sets of figures. The monthly decline measures the volume of goods exported after accounting for inflation, while the quarterly increase reflects their monetary value. Export values can therefore rise even when the actual amount of goods being sold does not.

The longer-term challenge for UK exporters

Looking beyond short-term monthly movements, the wider picture remains challenging.

Goods export volumes have been broadly flat for the past three years. In June 2026, exports to the EU were 5.1% lower than in June 2023, while exports to the rest of the world were down by 5%.

Services exports have shown greater resilience. Their global volume was 14.5% higher than three years earlier, although growth during the most recent quarter remained limited.

What does this mean for businesses?

Monthly trade figures can be volatile, but the three-year trend shows that UK goods exporters continue to face significant barriers to growth.

For individual businesses, however, international opportunities remain. New and existing trade agreements can provide access to growing markets and potentially lower tariffs, while careful customs planning can help businesses reduce costs, avoid delays and trade with greater confidence.

Taking advantage of these opportunities is not always straightforward. Rules of origin, commodity codes, export documentation and customs requirements can all affect whether goods move smoothly and whether a business can claim preferential tariff treatment.

Business West’s International Trade Services team works with exporters and importers every day, helping them understand the requirements, identify potential savings and keep their goods moving.

Whether you are considering a new overseas market, looking to make better use of a Free Trade Agreement or need support with export documentation and customs compliance, our international trade experts are here to help.

Talk to our International Trade Services team to find out how we can support your business.