Despite many goods being cheaper, British exports fell by £200m in September, while the goods trade deficit rose from £1.6bn to £12.7bn.
Britain’s dependency on exports to EU countries was apparent, with increases of £1.3bn, while the trade deficit with non-EU countries widened by £2.4bn, underlying the reliance on trade with Europe. With a fall in the pound, analysts expected a significant boost to exports both in Europe and beyond but since last year’s Brexit vote exports are growing at a very slow rate while imports are increasing.
The Office for National Statistics advised that the manufacturing industry remained quiet, the motor industry recovered ground lost earlier in the year with a bout of new car models, and meanwhile, the construction industry reported that output had dipped for the fourth consecutive month by 1.2%, with new orders falling to the lowest level since 2014.
With stagnant wages and rising inflation, British shoppers are increasingly switching to cheaper products from discounters such as Lidl and Aldi. The overall shopping experience has changed from high street shopping to cheaper discount stores. Lidl has been voted the UK’s fastest growing supermarket, by selling premium food at low prices that appeal to shoppers on a low budget.
Transport costs are also spiralling, with fuel cost and vehicle road taxes crippling many companies. The cost of purchasing and putting vehicles on the road is ever increasing and maintaining them is important in order to keep them on the road, van ply lining services vehicle accessories are paramount for keeping your van in a good clean, saleable condition.
The UK imported £38.5bn of food and drink in 2015, dwarfing the £18bn worth of food that Britain exported the same year. Only 50% of the food we eat, originates in this country, the rest is imported, mostly from Europe. With uncertainty over what is going to happen when we leave Europe, why aren’t our supermarkets relying more on the British market? Well, basically, we do not have enough land to supply the British population with all the crops and animals that we currently eat. Also, with the current shortage of housing, the government is unlikely to allow more land to be used for farming, so we are in a catch 22 situation.