Services Strength Offers Support as UK Goods Exports Fall, The latest UK trade figures show a contrasting picture for exporters, with goods exports falling sharply in June while services continue to provide greater resilience over the longer term.
Analysis from the British Chambers of Commerce shows that goods export volumes fell by 4.7% in June 2026, reversing gains made in May. While quarterly export values improved, the longer-term performance of goods trade remains subdued.
For Thames Valley businesses, the figures are particularly relevant. The region combines a strong services economy with major clusters in life sciences, technology and advanced manufacturing, meaning businesses are experiencing both sides of the UK’s export performance.
Goods exports lose momentum
Goods export volumes fell to both EU and non-EU markets during June.
Exports to the EU decreased by 5.6%, with lower sales recorded across areas including chemicals, machinery and transport equipment. Pharmaceutical exports to Germany were among the areas contributing to the decline.
Non-EU goods exports fell by 3.8%, partly reflecting lower exports of machinery and transport equipment, including cars to China and power generators to the United Arab Emirates.
The quarterly figures provide a more positive picture. In value terms, goods exports increased by 5.7% during the second quarter of 2026, with growth recorded in sales to both EU and non-EU markets.
However, the longer-term trend remains a concern. Goods export volumes have shown little sustained growth over the past three years.
Services continue to provide support
Services exports were broadly unchanged during June, but their longer-term performance has been considerably stronger.
In the second quarter of 2026, services exports were estimated to have increased by 1% in value, with business advisory and transport services contributing to the rise.
More significantly, the volume of UK services exports was 14.5% higher in June 2026 than three years earlier.
This difference between goods and services highlights an important challenge for UK trade. While internationally traded services have expanded over the period, businesses exporting physical products continue to face greater pressure.
What this means for Thames Valley businesses
The strength of services exports is encouraging for the Thames Valley’s professional services, technology, consultancy and knowledge-based businesses.
Companies already supplying services internationally should continue assessing opportunities to broaden their overseas customer base and enter new markets. Strong national performance does not remove the need for careful market selection, commercial planning and an understanding of local regulatory requirements.
For goods exporters, the figures warrant closer attention.
The Thames Valley has significant businesses operating across advanced manufacturing, automotive supply chains, pharmaceuticals and life sciences. Weakness in machinery, transport equipment and pharmaceutical exports therefore has clear relevance to the regional economy.
Businesses should review their own export performance at product and destination level rather than relying solely on national trends. Where demand is weakening in an established market, exporters may also wish to examine opportunities elsewhere, including markets covered by newer UK trade agreements.
Thames Valley Chamber perspective
Thames Valley Chamber of Commerce believes the figures reinforce the importance of maintaining a strong focus on export competitiveness.
For goods exporters, customs and trade procedures form part of that equation. Correct commodity classification, effective use of preferential trade agreements, accurate rules of origin assessments and appropriate Incoterms can all influence the cost of getting products to overseas customers.
Businesses should also consider whether their current mix of markets leaves them exposed to changes in demand in one particular country or region.
For services businesses, the longer-term growth figures provide encouragement, but continued international expansion will depend on identifying suitable markets and understanding the requirements for delivering services across borders.
How TVCC can help
Thames Valley Chamber of Commerce’s International Trade team supports businesses at different stages of their international journey, from companies considering their first overseas market to established exporters reviewing existing trade arrangements.
Support is available across customs compliance, rules of origin, tariff classification, Incoterms, export documentation and international market development.
For international trade and customs support, contact trade@tvchamber.co.uk or call 01753 870560.
Further information is available from the British Chambers of Commerce HERE
