UK export growth nearly slips into contraction due to Brexit and wider economic slowdown
UK export growth almost slipped into contraction in the first quarter of this year due to Brexit concerns and a global economic slowdown.
German export growth also slowed, falling for the fifth consecutive quarter, due to weaker car sales, according to a survey by accountancy firm BDO.
Read more: German export confidence slides as last month's 'ray of hope' vanishes
The company’s European Export Index found that UK export growth endured its worst quarter since the beginning of 2016 and narrowly avoided a contraction.
UK export growth fell by 0.8 points to 95.6 in the first three months of the year – 0.6 points away from a contraction.
The index predicted continued UK export decline in the coming months.
BDO partner Peter Hemington said: “It is troubling to see UK export growth creeping close to entering negative territory, with the strain of political and economic turbulence across Europe taking its toll.”
Hemington said future trade deals with the US, China and India would be key boosting growth in the long-term.
He added: “But given the close economic, political and social ties Britain has with Europe, the degree to which both sides can implement arrangements which minimise disruption and avoid a dramatic severing of these links will be critical in shaping the short-term economic outlook.”
Read more: UK exporters not ready for no-deal trade requirements
Across the EU as a whole export growth declined at its fastest rate in three years, led by a drop in global air freight.
Despite the bloc-wide slowdown, French export growth rose 1.7 points, making it the top performing exporter in the EU’s five largest economies.