UK Exports at a Glance: Trends, Risks & Opportunities

In August 2025, UK goods exports fell to £31.2 billion, down from £32.4 billion in July, according to Trading Economics data. Over the year to August, total UK exports of goods and services reached about £923.6 billion, representing a 5.5% increase compared with the previous year. Within that, however, goods exports declined around 3.5%, while services exports surged nearly 13%. This shift reflects the UK’s growing identity as a services-driven export economy, with goods now accounting for roughly 41–42% of total export value.

Despite this longer-term decline in goods exports, some recent figures have offered encouraging signs. In July 2025, exports of goods rose by £1.9 billion (6.6%), led mainly by trade with non-EU countries. In inflation-adjusted terms, export volumes were up 5.2%, and shipments to non-EU destinations jumped 9.3%. Exports to the EU also increased modestly by 4.6%. The U.S. market showed particular strength in July, with higher sales of machinery, chemicals, and transport equipment, suggesting that demand outside Europe continues to provide some resilience.

Services remain the brightest spot for UK trade, with financial services, business consultancy, insurance, and digital exports driving much of the growth. By contrast, manufacturing and industrial sectors continue to face headwinds from high energy costs, supply chain fragmentation, and global demand softness. The United States remains the UK’s single largest export destination, with roughly £200.8 billion in combined goods and services exported in the four quarters to Q1 2025, up 5.4% year-on-year. Yet this growth remains fragile, as new U.S. tariffs and policy uncertainty could quickly affect trade volumes. Earlier in 2025, for example, UK goods exports to the U.S. fell sharply after additional import duties were introduced.

The ongoing decline in the goods share of exports is part of a broader structural challenge for the UK economy. De-industrialization, regulatory burdens, and elevated production costs are contributing factors. At the same time, post-Brexit trade friction with the EU continues to create hurdles for exporters, while macroeconomic pressures—such as inflation, currency volatility, and weak global demand—are dampening external orders.

For businesses, several indicators merit close attention over the coming months: the trajectory of monthly trade data through autumn 2025; shifts in key export sectors such as machinery, chemicals, automotive, and food; and potential changes in tariff regimes, particularly in the U.S. and China. Exporters should also monitor sterling exchange rates and input cost trends, which can strongly influence competitiveness. Meanwhile, enhanced government support—especially through UK Export Finance—offers an opportunity for firms to mitigate risk and tap new markets.

Overall, while the near-term data highlight weakness in goods exports, the UK’s expanding services trade continues to offset some of the decline. The challenge for exporters lies in adapting to shifting global demand, strengthening supply chain resilience, and seizing opportunities in emerging markets as traditional trade routes face renewed uncertainty.