UK Trade - June 2023

11th August 2023

The value of goods imports decreased by £2.9 billion (5.8%) in June 2023 with a large fall in imports from non-EU countries partially offset by a rise in imports from the EU.

The fall in imports from non-EU countries was the largest since April 2020; this was because of a £2.1 billion (39.6%) fall in fuel imports as a result of lower gas prices in June.

The value of goods exports increased by £0.6 billion (1.8%) in June 2023 because of a rise in exports to non-EU countries, while exports to the EU remained stable.

The total trade in goods and services deficit narrowed slightly by £0.5 billion to £19.0 billion in Quarter 2 (Apr to June) 2023, because of a larger fall in imports than exports; the total trade deficit has declined steadily since Quarter 1 (Jan to Mar) 2022 when it stood at £30.4 billion.

The trade in goods deficit narrowed by £4.6 billion to £51.3 billion in Quarter 2 2023, while the trade in services surplus narrowed by £4.1 billion to £32.3 billion.

Goods exports
Exports to the EU remained stable in June 2023, with a £0.6 billion fall in exports of fuels being offset by a £0.3 billion increase in machinery and transport equipment and smaller increases in exports of chemicals and miscellaneous manufactures (Figure 5). The fall in exports of fuels was because of reduced exports of crude oil to France and Germany. Increases in mechanical machinery to Turkey and cars to Belgium were the main contributors to the rise in exports of machinery and transport equipment.

Exports to non-EU countries increased by £0.6 billion (3.8%) in June 2023. This rise was mainly because of a £0.6 billion increase in machinery and transport equipment exports, primarily of aircraft to Qatar and mechanical machinery to Singapore.

Quarterly trade in goods by commodity
Imports of goods from the EU increased by £1.4 billion (1.8%) in Quarter 2 (Apr to June) 2023 compared with Quarter 1 (Jan to Mar) 2023, as imports of machinery and transport equipment rose by £2.3 billion, partially offset by a £0.7 billion fall in fuels and a £0.2 billion fall in imports of chemicals (Figure 7). The rise in imports of machinery and transport equipment was led by increased imports of aircraft from France and road vehicles from Germany.

Imports from non-EU countries decreased by £4.4 billion (6.3%) in Quarter 2 2023, driven by a £4.7 billion fall in imports of fuels, primarily reduced gas from Norway and the United States, and a £0.6 billion fall in imports of chemicals. This was partially offset by a £0.5 billion increase in machinery and transport equipment, the result of increased imports of aircraft from the United States, and a £0.4 billion increase in imports of material manufactures.

Exports to EU countries fell by £0.6 billion (1.3%) in Quarter 2, driven by a £1.8 billion fall in fuel exports and partially offset by £0.7 billion and £0.5 billion increases in imports of machinery and transport equipment and chemicals respectively. The fall in exports of fuels to the EU was mainly the result of reduced exports of crude oil to the Netherlands and France and gas to Ireland. Rises in exports of cars to Belgium and organic chemicals to Ireland led to the increases in machinery and transport equipment and chemical exports.

Exports to non-EU countries rose by £2.2 billion (4.7%) in Quarter 2, driven primarily by a £2.0 billion increase in machinery and transport equipment exports. This was led by increased exports of mechanical machinery to Hong Kong and road vehicles to the United States.

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