Is the worst over for exporters?

On the face of it, the substantial improvement in the trade figures in July and the recent easing of financial market turmoil in some of the UK’s most important export markets suggests that the outlook for exports has brightened.

However, a closer examination of the latest trade figures reveals a less impressive picture. What’s more, the business surveys point to further falls in export volumes. And to make matters worse, the pound has continued to strengthen in recent weeks. So although there are still a number of reasons to be optimistic about the long-term outlook, exports seem likely to remain a drag on GDP growth for the next year or two.