Fewer exports to US and Germany dent trade figures

THE total value of exports from the region slipped by 5.3% in the year to June, according to official data.

The figures show North West companies sold goods and services worth £24.9bn in the year to the end of June, down from £26.3bn in the same period last year.

The fall was due to lower sales to the region’s two biggest markets, the US and Germany which accounted for £3.6bn and £3.5bn respectively, down from £4.4bn and £4.2bn last time.

Sales to the US have declined sharply since the third quarter of 2012 when they were worth £1.3bn. In the final three months of that year they slipped to £793.3m, then to £706.6m in the first quarter of 2013. Between April and June the figures improved to £814m. Exports to Germany were £635m in the second quarter, up on £630m from January to March, but down from £1.4bn in the final quarter of 2012.

But other markets showed strong growth with sales to the Netherlands up by 50% at £1.6bn over the year, making it the region’s third biggest market, and continuing growth in China, up 6% to £1.6bn. There was also strong growth in sales to Poland (26%) and Sweden (15%).

The European Union is still the biggest regional market accounting for £13.1bn of sales, or 53%, up from 52% last year. Asia and Oceania represents £4.3bn, and North America £4bn.

Overall, the second quarter figures were level with the same period last year at £5.7bn.

Clive Drinkwater, regional director of UK Trade & Investment North West which supports exporters, said: “Although these statistics show a drop in certain markets, there have been increases in others including the Benelux region, with exports to the Netherlands up 50% to £1.6bn, which makes it our third biggest market. 

“China also continues to do well, up by 6% to over £1.6bn and Poland and Sweden have shown increases of 26% and 15% respectively, showing that North West companies are making progress in markets suitable for novice exporters – Netherlands and Belgium – as well as more complex markets such as China and Indonesia, which are more suited to experienced exporters.

“We should treat regional statistics with great caution as, due to the way that sales are attributed, for instance, sometimes to the place of invoice rather than manufacture, they don’t give a complete picture of activity in the North West. In fact, the “unallocated” category in the official statistics is nearly 50% higher than all NW exports, so we cannot always identify which region exported products originate from. 

“That said, looking at the latest results, the slight dip in NW exports in the year ending June 2013 is effectively due to a drop in chemical sales to the US and Germany. If you take this out of the equation, we’re doing quite well in general, and with an excellent performance in some markets.”