UK export growth reaches lowest level since Brexit vote - BDO
The UK export growth has fallen for a sixth consecutive quarter and has reached its lowest level since the Brexit referendum in 2016, a survey has found.
Export growth is nearing the point of contraction and the report revealed it was the worst performer of the largest five EU economies in the last quarter, BDO's latest European Export Index found.
The export growth index plummeted to 95.6 index points in Q3 2018 from 97.6 the previous quarter and is creeping closer to the point of contraction, below 95.0.
At the time of the Brexit referendum, export growth marked a fall of 15.8 index points.
The rising prices of UK exports is also responsible for the slow growth. The export inflation index – which indicates the rate of year-on-year growth in export prices – has risen from 100.1 to 102.7 this quarter.
Brexit uncertainty is causing companies such as BMW and Jaguar Land Rover to be spooked and start to make arrangements for a no-deal Brexit including the temporary shut down of factories and the reduction of employees working hours.
The UK export growth was the weakest performer out of the top 5 EU economies and dips beneath that of Germany, France, Italy and Spain-
Peter Hemington, Partner, BDO LLP, said: “UK export growth is on a downwards trajectory and has now hit its lowest level since the UK decided to leave the EU. With party conference season upon us, we need clarity on the shape of Britain’s future trading arrangements so that UK exporters can prepare for the future with confidence.
“A rise in the proportion of British companies which export goods and services is also vital, spurred by meaningful government support and an ambitious industrial strategy which has exporting at its core.”