UK exports slump as nearly 3 in 10 firms ship less

Parcelhero's analysis of official survey data found that nearly three in 10 UK exporters shipped fewer goods in June than a year earlier. The findings came after new Office for National Statistics figures showed a £2.2 billion monthly fall in UK goods exports.

According to the ONS, goods exports fell by £2.2 billion, or 6.3%, in June. Exports to the EU dropped by £1.3 billion, or 7.4%, while shipments to non-EU markets fell by £1 billion, or 5.4%.

The drop in exports to the EU was driven by weaker fuel, chemical and machinery sales, including lower pharmaceutical shipments to Germany. Outside the bloc, the decline reflected reduced car exports to China and lower shipments of power generation equipment to the UAE.

Goods imports fell by a smaller £0.4 billion, or 0.7%, during the month, leaving the UK goods trade deficit at £60.7 billion in the second quarter.

Parcelhero compared the trade data with export responses in the ONS Business Insights and Conditions Survey, which covers businesses that have exported over the past 12 months. It found that 28.6% of currently trading exporters said they had exported less in June than in the same month last year, up from 24.4% when the question was last asked in March.

Only 13.8% said they had exported more, down from 15.1% three months earlier, while a further 2.5% said they had been unable to export at all.

The picture was weaker in some parts of the economy. Among manufacturers, 31.6% said they had exported less than in June last year, as did 31.5% of wholesalers and retailers.

Rising costs

Costs were also moving in the wrong direction for many exporters. Some 39% reported higher export costs than a year earlier, up from 35.3% in March, while only 2.4% said costs had fallen.

Manufacturers and retailers again reported sharper pressure. Among currently trading manufacturers, 44.1% said their export costs were higher than a year earlier, rising to 60% among wholesalers and retailers.

The analysis also pointed to continuing pressure linked to post-EU-transition trade rules. Some 22.9% of exporters said costs directly linked to export regulation changes were still increasing, up from 21.5% in the previous survey round, while the share reporting no such cost increases fell from 42.2% to 39.2%.

Admin burden

Alongside weaker volumes and higher costs, exporters reported a less clear picture on administration. Time spent on exporting increased for 18.9% of businesses, but the proportion saying their export workload had stayed the same fell from 57.1% to 47.2%.

At the same time, the share saying they were not sure how their export workload had changed rose from 17.4% to 23.1%, suggesting a growing number of exporters were finding it harder to judge the effect of paperwork and compliance demands.

David Jinks, Head of Consumer Research at Parcelhero, said: "Asked how their exporting in June 2026 compared with the same month a year earlier, 28.6% of currently trading exporters said they had exported less, up from 24.4% when the same question was last asked in March 2026. Only 13.8% said they had exported more, down from 15.1% three months earlier, while 2.5% said they had been unable to export at all. Looking specifically at manufacturing and retail, the results are even more concerning. Some 31.6% of manufacturers and 31.5% of wholesalers and retailers said they exported less than in June 2025.

"The cost of exporting is climbing too. Some 39% of exporters said the cost of exporting in June 2026 was higher than a year ago, up from 35.3% in March, while just 2.4% reported falling costs. The manufacturing and retail sectors again fared particularly badly. Some 44.1% of currently trading manufacturers and 60% of wholesalers and retailers said their export costs were higher than last year. On top of this, 22.9% of exporters said costs directly linked to post-EU-transition export regulation changes were still increasing, up from 21.5% in the previous survey round, while the proportion reporting no such cost increases fell from 42.2% to 39.2%.

"There are signs of growing complexity too. Time spent on exporting increased for 18.9% of businesses, but the share saying their export workload had stayed the same fell sharply, from 57.1% to 47.2%, while the proportion saying they were 'not sure' how it had changed rose from 17.4% to 23.1%, suggesting more exporters are finding it harder to judge or predict their own admin burden.

"These figures confirm what a lot of exporters have been telling us for months: it's not just that overseas demand has gone quiet, but that exporting itself has become more expensive and more time-consuming. With nearly 40% of exporters saying the cost of exporting has gone up year on year, and almost a quarter saying costs linked to post-Brexit export rules are still rising, that is a real drag on competitiveness for UK firms trying to sell into the EU and beyond.

"The jump in businesses saying they are unsure how their export workload has changed is also worth flagging. When more businesses cannot confidently say whether their admin burden has gone up or down, that is usually a sign the rules or processes around them are shifting, not settling.

"Our advice to exporters is to treat customs and compliance as a cost centre worth actively managing, not a fixed overhead. Reviewing paperwork processes, consolidating shipments where possible, and working with a delivery partner who understands current EU and non-EU import requirements can meaningfully reduce both direct costs and the hidden time costs that are clearly building up across the sector."