Decline in chemicals sector hits NW exports

EXPORTS from the North West fell in the first quarter of this year, following national trends, but the number of companies exporting rose, according to figures from HMRC.

Year-on-year between Q1 2012 and Q1 2013 exports from the UK as a whole fell by £3.5bn from £76bn to £72.5bn and in the North West from £7bn to £5.9bn.

Just four English regions saw growth in the first quarter, with Yorkshire & Humberside, the East Midlands, the West Midlands and the South West but decreased all other regions.

The number of exporters rose in all UK regions apart from the North East, Yorkshire & Humberside, Wales, Scotland and Northern Ireland, HMRC said.

In the North West, a slump in the chemicals sector – the most active sector for exports – was the major cause for the fall.

UK Trade and Investment, the government department tasked with increasing exports, said the first quarter of 2012 was a record and so comparisons were always likely to be tough.

Regional director CLive Drinkwater said: “Over the last seven years we have grown exports overall from £18bn to £25bn. Though disappointing, the good news is that the exports of services haven’t dropped and we are continuing to do well in emerging markets like China.”

Encouragingly for Mr Drinkwater and his team, who have tried to woo more first time exporters over the past year, the number of companies selling goods and services into international markets rose 2.4% year-on-year.

Reflecting the economic difficulties in the euro zone – the UK and the region’s biggest market -, exports to the European Union fell nearly £400m in the first three months of 2013  to  £3.25bn. The US and Germany were the two most important territories.