The value of goods imports increased by £3.6bn (8.2%) in October 2023, with rises in imports from both EU and non-EU countries, says the latest trade data from the Office for National Statistics (ONS).

ONS figures released yesterday indicate the rise was mainly the result of greater imports of machinery and transport equipment from both EU and non-EU countries, while the value of goods exports increased by £0.4bn (1.2%) because of increased exports to non-EU countries. 

Balanced against that though, exports to the EU decreased.

An ONS spokesman said: "The total trade in goods and services deficit narrowed by £2.3bn to £9.2bn in the three months to October 2023, the result of a substantial fall in goods imports. The trade in goods deficit narrowed by £2.1 billion to £47.3 billion in the three months to October 2023, while the trade in services surplus widened by £0.2 billion to £38.1 billion."

William Bain, BCC Head of Trade Policy, told Punchline-Gloucester.com:  "Weak economic growth globally, but particularly in Europe, continues to affect UK trade in this last quarter of 2023. While it is good to see goods exports picking up in the Indo-Pacific region, the second successive big drop to the EU is a major concern."

The picture for imports was more positive, he said. 

"There was a noticeable pick-up in demand for cars, and electrical manufactured goods in the run up to Christmas. On services, the picture is steady, but the strong export growth experienced in 2022 has faded."

Against this background, the BBC is urging policymakers to take further measures to support exports – with key focus on the EU. 

Mr Bain added: "We will be releasing our latest recommendation next week in our new report, The TCA: 3 Years On."

Assessing UK trade in detail, the BBC reports a "mixed picture" to open the final quarter of the year. Goods exports fell slightly when measured by volume, but goods imports rose substantially - both in current price terms and after removing the effects of inflation. On the current prices measure, EU goods export values fell by £0.9bn (5.8%) but goods import values rose by £1.5bn (6.1%) during October.

Non-EU goods export values rose, meanwhile, by £1.2bn (8.2%) and import values by £2.1bn (10.9%) over the same period. Overall goods exports on the current prices measure rose by £0.4bn in October (1.2%).

Looking at imports, the BBC said the overall goods volumes rise – by 6.7% (£2.5bn) – came on the back of a big rise in purchases of machinery and transport equipment. On EU imports, car purchases from Germany were up in October and there were increases in levels of refined oil purchased from the Netherlands, Denmark and Sweden.

Meanwhile goods imports volumes from the rest of the world rose by 8.9% (£1.4bn) in October, driven largely by electrical machinery imports from China, increased fuel imports from Norway, chemicals from Canada and pharmaceutical products from Switzerland.

The detail on exports shows that volumes fell by 0.3% (£0.1bn). Following the 3.4% decline in goods exports volumes to the EU in September, a further slump of 7% occurred in October. Drops in exports of chemicals, manufactured goods (including pharmaceuticals) and food were the main areas of decline in exports to the EU, while goods exports volumes outside the EU rose by 6.2% (£0.8bn), with increased sales of manufactured goods to India, together with increased oil exports to China, and a rise in demand for chemicals.

On trade in services, import and export volumes both fell slightly. Import volumes fell by £0.1bn, while export volumes fell by £0.2bn. On the current prices measure, there were similar falls in services import values of £0.1bn and in export values of £0.2bn over the month.

The ONS has also issued updates on GDP, which is estimated to have shown "no growth" in the three months to October 2023, compared with the three months to July 2023.

Monthly GDP is estimated to have fallen by 0.3% in October 2023, following growth of 0.2% in September 2023. Services output fell by 0.2% in October 2023, driven by a fall in information and communication, and was the main contributor to the fall in growth in GDP; this follows growth of 0.2% in September 2023.

The ONS added: "Production output fell by 0.8% in October 2023, driven by widespread declines in manufacturing, after showing no growth in September 2023. The construction sector fell by 0.5% in October 2023 after growth of 0.4% in September 2023."

Monthly GDP is estimated to have fallen by 0.3% in October 2023, following growth of 0.2% in September 2023.

Services output fell by 0.2% in October 2023, driven by a fall in information and communication, and was the main contributor to the fall in growth in GDP; this follows growth of 0.2% in September 2023.

Production output fell by 0.8% in October 2023, driven by widespread declines in manufacturing, after showing no growth in September 2023.

The construction sector fell by 0.5% in October 2023 after growth of 0.4% in September 2023.