0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Bright Export Figures Defy Expectations and Strength of Sterling

Written by: Keith Tully

Published: 7th August 2015

Businesses based around the UK delivered their strongest set of exporting revenue figures in almost a decade during the second quarter of this year.

According to data from the Ernst & Young (EY) ITEM Club, there was a striking 6.6 per cent increase in the value of exports heading out of the UK to elsewhere in the world during the three months prior to the end of June this year.

The figures have defied expectations among economic analysts, particularly in light of the relative strength of the British pound against the euro.

In fact, business experts from EY, while welcoming what represents broadly positive data for British companies, have suggested that the upward trend for exports out of the UK looks unlikely to continue given the importance of European markets to exporters around the country.  

The 6.6 per cent rise in exports during Q2 2015 is the sharpest increase recorded in a three-month period since early 2006 and before the Financial Crisis.

“Overall, even if the Q2 strength is not subsequently revised down, it is difficult to envisage the firmer data persisting, given the ferocity of the headwinds coming from the strong pound,” said Martin Beck, senior economic adviser to the EY ITEM Club, which assesses and forecasts economic conditions and sentiment around the UK.

The growing strength of the pound against the euro has seemingly already had a notable dampening effect on exports to Eurozone economies, with the latest numbers showing 1.8 per cent growth in exports to Europe from the UK as compared with a 6.4 per cent increase in exports to the rest of the world.

“The geographic breakdown of exports offers some confirmation that exports to the Eurozone are being constrained by the sizeable appreciation in the value of the pound against the euro,” Beck observed.

EY’s economic expert also pointed out that the recent upward trend in exports from the UK goes against expectations among businesses from around the country, which have reportedly “painted a universally gloomy picture on exports”.

The deficit between Britain’s imports and exports in the second quarter of the year was smaller than it has been in four years, with the rise in export values the sole reason why, according to EY’s figures on the subject.  

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners