North West exports hit three-year low
NORTH West exports fell sharply in the second quarter to a three-year low due to falling European and global demand.
According to figures from HM Revenue & Customs overseas sales by companies in the region fell 19% from £6.8bn in the first quarter to £5.5bn (2011: £6.7bn).
The US was the biggest individual country to buy from the region at £985m, down from £1.2bn in the first quarter.
But the eurozone crisis made the biggest impact on the region with European countries ordering £2.7bn of goods, down from £3.4bn last year.
Chemicals, machinery and manufactured goods were most in demand. The government said 4,500 North West companies were involved in exporting, about the same number as last year. Imports to the region were unchanged at £6.9bn, creating a trade deficit of £1.4bn.
Nationally there was a 2% decline to £73.1bn and a trade deficit of £27.4bn, up 9% on the first quarter.
Mike Eccleshall, UKTI deputy international trade director for the North West said: “There is no doubt that at first glance the fall in export sales in the North West of £1.3bn compared with quarter one, 2012 is disappointing.
“However, the picture is quite mixed, with increases in sales to Germany despite the fact that overall sales to the EU are down. Exports to Asia and the Middle East also continue to rise and the actual number of exporting companies has also increased despite the drop in value.
“If you dig a little deeper, there is clear evidence that opportunities remain in global economies, and it is encouraging that a growing number of North West businesses are actively pursuing them.”
Dr Brian Sloan, chief economist at the Greater Manchester Chamber of Commerce, said: “This is a major concern for the region given the importance of exports to the recent growth in employment and confidence in the region. Our quarterly economic survey, which is currently underway for quarter three, does not indicate that the situation is improving.
“At this time more measures are required to support the domestic economy to create the right conditions for business investment and job creation longer term. This will help us build a position as a major exporter to the global economy and addresses the issue of high levels of worklessness. This must start with bringing forward infrastructure investment and ensuring the right supply of skills to meet the future needs of businesses in the region.”
