Euler Hermes UK Exporters’ PMI

August 2008

UK exports decline at fastest rate in nearly seven years

Key Points

Second consecutive contraction in export market
activity; fastest since November 2001.

Demand from Eurozone economies faltering; US
continues to stagnate.

BRIC region continues to record strong
expansion.

Summary

UK exports declined in July for the second
successive month as rising inflationary pressures
along with the ongoing credit crunch contributed to
global economic conditions worsening further,
according to the latest research from credit insurer
Euler Hermes UK, a company of Allianz.

The Euler Hermes UK Exporters’ PMI remained in
negative territory, registering 47.7, down from 49.5
in the previous month. The reading was the lowest
since November 2001 and, at a level below the
crucial 50.0 no-change mark, the index pointed to a
further month-on-month decline in exports.

The decline in the UK Exporters’ PMI mainly
reflected continued deteriorations in economic
conditions in European trading partners such as
Ireland and Spain. According to latest data, activity
levels in these countries – which make up around
11% of total UK exports – contracted significantly
again in July. Other major European trading
partners, including France and Italy, also saw
marked falls in activity.

Nonetheless, the German economy grew again in
July, helping to partly make up for the weakness in
other parts of Europe. However, growth was the
weakest in just over three years, indicating that
support from the UK‘s principal European export
destination may be faltering.

Download the whole press release

Download the PDF document
Euler Hermes UK Exporters’ PMI