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Blow for Gordon Brown as exports see biggest fall in three years
Nicholas Cecil, Deputy Political Editor9 Mar 2010
Gordon Brown's hopes of an export-led recovery before the general election were dealt a hefty blow today.
Official figures showed that UK exports suffered their biggest fall for more than three years in January.
They plunged by £1.4 billion, or 6.9 per cent, to £19.5 billion compared with December in the largest month-on-month fall since July 2006, according to the Office for National Statistics.
The figures — which surprised the City given the fall in the pound which should have helped exporters — will dent Labour hopes that Britain's economy will pick up steam before 6 May, the expected election date.
Liberal Democrat Treasury spokesman Vince Cable said: “These are deeply alarming figures which suggest that British exporters simply haven't been able to take advantage of the big devaluation which has occurred in the last year.
“I worry that the long-term decline and neglect of British manufacturing has taken its toll and it does suggest that an awful lot more needs to be done to rebalance the economy to make it more competitive.”
With imports down 1.6 per cent, Britain's trade gap in global goods grew to £7.99 billion, from a downwardly revised £7.01 billion in December, and well in excess of City forecasts.
The pound, which had traded at $1.5067 earlier this morning, fell to $1.4948 shortly after publication of the figures as fresh concerns spread over the state of the UK economy.
Howard Archer, chief UK economist at IHS Global Insight, said: “Even allowing for the fact that both exports and imports could well have been limited in January by the very bad weather hitting the UK and other countries, the fact that exports fell appreciably more than imports is worrying news and it heightens concerns as to whether or not net trade can make a decent positive contribution to growth going forward and help the economy to rebalance.”
The gloomy news came as David Cameron praised a report by Sir James Dyson on boosting Britain's exports.
His blueprint includes better finance for hi-tech start-ups, cultural change to develop high esteem for science and engineering, encouraging more graduates in these subjects, better exploitation of new knowledge and more support for hi-tech companies.
The Tory leader said: “The bigger picture of these plans is a real gear change in the make-up of the British economy. I want us to be the country that moves forward, that really starts making things again, that sees a world full of opportunity, a world covered in new markets for us to sell our goods and products and services to.
“I want us to be a country that stops just borrowing and buying from China and instead really starts selling to China.”
Reader views (11)
Yet more disastrous economic figures. Anyone thinking of voting Labour (or UKIP - effectively a vote for Labour) should ask themselves why Labour is maing such an almighty fuss about Lord Ashcrof't tax status. Could it be that they're desperately trying to deflect attention away from the economic catastrophe created by Gordon Brown. Surely not!!! Wake up and smell the coffee guys before it's too late. Whatever you think of the tories, it's ALWAYS a Tory government that restores the economy after Labour destroys it.
- Malcolm, London, 09/03/2010 16:29
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poor old golden brown stumbles from crisis to disaster
and then pitches headlong into calamity, before falling
for yet another catastrophe. But each time tries to climb out by promising an enquiry in which lessons will be learnt so that it won't happen again, whilst urging all to believe he is the right man for the job, has the best policies and is confident that we are about to enter a golden age of recovery, stability and growth.
pinochio is alive and well and works with peter pan in a little heavily fortified little street just off whitehall.
- M.O'Brien, london.uk, 09/03/2010 16:03
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Gordon Brown alleges he "saved the world" - perhaps he might explain why this country is now on the brink of bankruptcy.
- R.F.York, Yorks, UK, 09/03/2010 15:24
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Unfortunately, Mandy has got the media in such hysterics about the Ashcroft non-dom story that the real problems facing the UK barely get reported.
The parlous state of the economy is what politicians should be debating and resolving in parliament. And you can forget the Chilcott fiasco that's investigating Iraq. Brown and Darling should be brought before the beak for their treasonous management of the country's finances. And then send the pair of them back to Scotland.
- Nobby Clark, Perth, the Scottish one, 09/03/2010 15:21
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I see Vince is no longer supporting his mate Gordon.Whats happened a playground spat or maybe abit of bullying!
- Tojo, Hythe, 09/03/2010 15:15
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I vote we export Gordon Brown - to Scotland!
- Croyboy, Croydon, 09/03/2010 14:09
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Only thing being exported are businesses and jobs. eg: Cadburys.
- Frank, Home Counties, England., 09/03/2010 13:49
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Let’s still vote for them anyway no matter how incompetent they are, because surely can’t make things even worse. Can they?
- Xtremely Worried, Britain (No Longer Great), 09/03/2010 13:45
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Where are all the barking labour attack dogs Harman, Balls and Mandy when some real news about all our futures and our country hoves into view - the silence is deafening...
- Christian Ball, London, UK, 09/03/2010 13:30
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And these figures have probably been fiddled to make them look better than they really are. A falling pound to help exports? Inflation rising? Best placed to weather the recession? An economic recovery???
- Totally Confused, Ex London, 09/03/2010 12:59
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This shocking, we still export things ?
- Hansel, London, 09/03/2010 12:45
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