UK Trade - March 2023

12th May 2023

The value of goods imports decreased by £1.4 billion (2.8%) in March 2023; after removing the effect of inflation, imports of goods fell by £0.8 billion (2.1%).

The value of goods exports decreased by £0.7 billion (2.3%) in March 2023; after removing the effect of inflation, exports of goods fell by £0.7 billion (2.7%).

The monthly falls in both imports and exports of goods were primarily because of decreases in trade with non-EU countries, while trade with the EU remained stable.

The quarterly trade in goods deficit narrowed by £8.9 billion to £55.0 billion in Quarter 1 (Jan to Mar) 2023, while the trade in services surplus widened by £1.3 billion to £39.8 billion.

These changes to the quarterly trade balances were primarily because of falls of £3.8 billion in machinery and transport equipment imports, £3.3 billion in fuel imports and £2.0 billion in imports of other business services.

The total trade in goods and services deficit narrowed by £10.2 billion to £15.1 billion in Quarter 1 2023.

Goods imports
The unchanged level of imports from the EU in March 2023 was because of a £0.2 billion rise in imports of machinery and transport equipment being offset by a £0.2 billion fall in fuel imports, shown in Figure 3. All other commodities remained stable.

The rise in imports of machinery and transport equipment was because of increased electrical machinery imports from the Netherlands and mechanical machinery from Germany. Fuel imports fell because of decreased refined oil imports from the Netherlands.

Imports from non-EU countries decreased by £1.4 billion (5.9%) in March 2023. Fuel imports fell by £0.7 billion, with falls in crude oil and gas from Norway and refined oil from China. Additionally, imports of miscellaneous manufactures, machinery and transport equipment, and material manufactures also fell in March. This was driven by decreases in other manufactures, cars, and miscellaneous metal manufactures from China.

Goods exports
Exports to the EU remained stable in March 2023 because a £0.3 billion rise in exports of miscellaneous manufactures was offset by a £0.3 billion fall in chemicals, shown in Figure 5. The rise in miscellaneous manufactures was driven by exports of other manufactures to the Netherlands, while a fall in exports of organic chemicals to Ireland contributed to the decreased exports of chemicals.

The £0.7 billion (4.5%) fall in exports to non-EU countries was because of a £0.4 billion decrease in machinery and transport equipment, led by reduced ship exports to China. There was also a £0.3 billion fall in chemical exports and a £0.2 billion fall in material manufactures, because of reduced exports of organic chemicals to the United States and mineral manufactures to Israel. This was partially offset by a £0.2 billion increase in fuel exports.

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