UK exports of construction and earthmoving equipment showed further growth in Q1 2017, reaching £700 million, the highest level since Apr/Jun quarter 2015.
This can be attributed to both improving demand in some of the major overseas markets, as well as the benefit of the weaker £ exchange rate since the middle of 2016, following the Brexit referendum.
UK exports of construction and earthmoving equipment showed further growth in Q1 2017, increasing by 6.1% in weight terms (tonnage of machines) compared with Q4 2016, and 13.2% in value terms (£ million). On a quarterly basis, Q1 saw the highest level of exports since Apr/Jun 2015, at £700 million.
This increase can be attributed to both improving demand in some of the major overseas markets, as well as the benefit of the weaker £ exchange rate since the middle of 2016, following the Brexit referendum.
The USA remained the top destination for exports in Q1 2017, accounting for 19% of total exports on a weight basis, and 23% on a £ value basis. Collectively, exports to EU28 countries accounted for 48% of total weight of machines exported in Q1, and 44% of £ value. These were similar proportions to the 2016 annual levels.
Imports of equipment also showed significant increases in Q1, and are following the same seasonal pattern as the last two years, when imports “peaked” in Apr/Jun quarter, and “bottomed” in Oct/Dec (see the graphs following). In Q1, imports showed a 34.1% increase on Q4 2016 in weight terms, and a 39.1% increase on a £ value basis, reaching £388 million. In both cases, imports were also higher than Q1 2016 levels.
Japan remained the highest single country source of imports in Q1, accounting for 21% of total imports of equipment in weight terms. On a £ value basis, Sweden edged ahead of Japan as the largest single import source, accounting for 19% of total imports in Q1.
The UK remains a net exporter of construction and earthmoving equipment, measured in both weight and value terms. In Q1, the trade surplus reduced to £312 million, from £340 million in Q4 2016, but after this, was still the highest quarterly surplus since Q4 2015.
This report provides an update on quarterly exports and imports of Construction and Earthmoving equipment (excluding trade in components and parts). The data is taken from HMRC official trade statistics and is available in weight (tonnes) and value (£ million) terms. Trade data has been used from 9 different HS (Harmonized System) codes. This consists of the following at the 4-digit level:
8413 – concrete pumps 8474 – crushing and screening equipment, and concrete, mortar and other types of mixers
8479 – machinery for public works 8701 – track-laying tractors 8704 – dump trucks for off-highway use 8705 – concrete mixers 8426 – cranes (but excluding gantry cranes, overhead travelling cranes and ship derrick cranes)
8429 – construction and earthmoving equipment – including bulldozers, graders, scrapers, loaders, excavators, shovels, tamping machines and road rollers 8430 – pile driving and pile extracting equipment, tamping and compacting machinery
