Services Sector Exports Slowing As Brexit Uncertainty Still Looms

The percentage of tertiary sector firms expecting profitability over the next 12 months is at its lowest level in four years

Services Sector Exports Slowing As Brexit Uncertainty Still Looms

The services industry is experiencing a slowdown in exporting as post-referendum uncertainty still looms, according to the British Chambers of Commerce (BCC).

It’s latest Quarterly International Trade Outlook has revealed that the volume of trade documentation issued nationally, fell by 4.14% on the quarter following a surge pre-Brexit – suggesting business who trade overseas are becoming more pessimistic about the future.

The percentage of tertiary sector firms expecting profitability over the next 12 months also fell from +33% to +15% in Q2 – the lowest level in four years. While firms in the manufacturing industry saw a similar drop, with confidence lowering to +22%, from +28% in Q2 also.

Despite the negativity, the number of manufacturers reporting improved export sales rose to +17%, up from +9% in Q2, with improved export orders also rising to +12%, from +5% in Q2.

Adam Marshall, BCC director general, said:

“While factors including the weaker pound have benefited manufacturers when it comes to exporting, the services sector continues to face challenges. The decline in export orders in the services sector is concerning considering the sector is by far the largest part of the economy.

“Our data suggests that slower growth is likely to come in the months ahead. However, it is important to note that while the UK’s economic growth may slow further, we are unlikely to enter a recession.”

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