Given that services are responsible for almost 60% of total UK exports, the latest monthly trade figures issued by the Office for National Statistics (ONS) give cause for concern with its estimates showing that both imports and exports of services decreased by £0.1 billion in May 2026.
The ONS cites the S&P Global UK Services Purchasing Managers Index (PMI) for the month under review (available here) which shows a marginal fall in the export of services.
Respondents reported global economic uncertainty and intense competition as the main issues they have encountered, the ONS notes.
On a more positive note, its May report, which can be found here, highlights that the value of goods exports rose by £1.5 billion (4.5%), with increases in exports to both EU and non-EU countries.
However, British Chambers of Commerce (BCC) Head of Trade Policy, William Bain, also picks out the sluggish trade in services as the main cause for concern in the latest figures.
“In May, there was a static picture in exports accompanied by a 0.7% fall in imports,” he points out. “Looking at the past three months, services exports have now fallen into negative territory.”
He suggests that these reductions are at least partly caused by uncertainty and depressed orders caused by the war in Iran.
