Services Propping Up Exports As Goods Fall 

Commenting on the latest trade data released by the Office for National Statistics, William Bain, Head of Trade Policy at the British Chambers of Commerce, said:    

“There was further volatility in June as the volume of goods exports dropped by 4.7 per cent, a reversal of May’s gains. Looking at the broader picture, the last quarter saw an increase in the value of goods exports but the long-term trend in volumes has been flat for the last three years. This is a real concern.

“Sustained growth in services exports has also been elusive for the past quarter, but they have risen in volume by 14.5 per cent since June 2023.

“If the government wants to use exports as a lever for economic growth it must reduce trade barriers with the EU. There must also be a focus on striking new deals with more countries and reversing the decline in export support.”

Detailed Analysis: 

June 2026 

Total goods exports decreased by 4.7 per cent in volume. This was due to a 3.8 per cent decrease in non-EU exports, led by lower machinery and transport exports, including cars to China and power generators to the UAE. Meanwhile there was a 5.6 per cent decline in EU exports. This was due to lower sales of fuels (crude oil to Germany and Poland), chemicals (pharmaceutical exports to Germany), transport and machinery. 

By comparison, goods imports rose by 1.1 per cent. This was mainly down to a 3.3 per cent rise in non-EU imports, despite lower fuel imports from the US. However, EU imports saw a 0.8 per cent fall. This was due to fewer purchases of fuels and chemicals, although there was a rise in German car imports. 

Both UK services exports and imports remained broadly static. 

Q2 2026 

Goods exports rose by 5.7 per cent in value for the second quarter.  This was split between a 5.3 per cent increase to the EU, and a 6.1 per cent rise to the rest of the world.

Goods imports were also up by 4.3 per cent in value terms. This was due to a 5 per cent rise from the EU, and a 3.6 per cent increase from the rest of the world. 

Services exports were estimated to have risen by 1 per cent in value terms, led by an uptick in business advisory and transport services sales. 

Meanwhile, services imports were estimated to have risen by 0.7 per cent in value, mainly from purchases of transport services. 

The Three-Year Picture 

Goods exports have largely moved sideways over the past three years. Although sales volumes to the EU in June 2026 were 5.1% lower than in June 2023, monthly totals across that period have averaged £15.5bn, showing no sustained growth trend. 

It is a similar picture the rest of the world, exports in June 2026 are down by 5 per cent on three years ago. The monthly totals across the period averaged £16.9bn, a broadly static picture. 

The volume of UK services exports, globally, is 14.5% higher, on the same metric. 

The full ONS data can be found here. 

Read more latest news from the BCC here.

13.08.2026