The latest UK trade figures show a disappointing August for British exporters, with goods exports falling following July's encouraging growth. A sharp decline in exports to the EU was the main reason behind the fall, although trade with countries outside the EU showed a small increase.
The latest figures published by the Office for National Statistics (ONS) reveal that the value of UK goods exports fell by £1.1 billion (3.1%) in August, compared with July. Goods imports also decreased, falling by £1.3 billion (2.3%).
The figures highlight the challenges facing UK businesses trading internationally, with global uncertainty and changing demand continuing to affect export performance.
EU exports decline
After a stronger performance in July, UK goods exports to the EU fell by £1.2 billion (7.3%) in August.
The decline was particularly noticeable in machinery and transport equipment, manufactured goods, fuels and chemicals.
Lower aircraft exports to the Netherlands contributed to the fall, alongside reduced exports of metals to Germany and crude oil to several European markets.
There was slightly more positive news for trade beyond the EU. Goods exports to non-EU countries increased by £0.2 billion (0.9%), helped by higher exports of chemicals to the United States. However, this modest growth wasn't enough to offset the decline in EU trade.
What does the wider picture tell us?
Looking beyond the monthly figures gives a clearer indication of how UK trade is performing.
In the three months to August 2026, the value of UK goods exports fell by £0.5 billion (0.5%) compared with the previous three-month period.
Exports to the EU decreased by 3.5%, while exports to non-EU countries increased by 2.3%.
Meanwhile, the UK's trade in goods deficit widened to £59.1 billion, as imports increased while exports fell.
Services continued to provide a more positive picture. Early ONS estimates suggest that services exports increased by 1.4% over the three-month period, helping to offset some of the weakness in goods trade.
Overall, the UK's combined trade deficit in goods and services widened to £8 billion.
Exporters need greater confidence to grow
The latest figures reinforce concerns about the UK's export performance, particularly when it comes to goods.
Business West and the British Chambers of Commerce have highlighted the need for stronger export growth alongside wider economic growth, with businesses facing an uncertain international trading environment coupled with a reduction in export support.
For exporters, challenges can include changing tariffs, additional customs requirements and the costs associated with entering new markets.
However, opportunities remain. The UK's growing network of Free Trade Agreements (FTAs) offers businesses potential advantages, including reduced tariffs and improved access to overseas markets.
Making the most of these agreements, and understanding the rules that apply, can help exporters reduce costs and remain competitive.
Supporting businesses to trade internationally
While monthly trade figures will inevitably fluctuate, the latest data is a reminder of the importance of helping more UK businesses succeed in international markets.
At Business West, our International Trade Services team works with businesses every day to help them navigate customs requirements, manage export documentation and make better use of Free Trade Agreements.
Whether you're exporting to an established market or exploring new opportunities overseas, understanding the requirements and having the right support can make a real difference.
Find out how Business West's International Trade Services can help your business trade with confidence.
