Strong Q1 for exporters, finds new UK Trade Barometer report

More than 60% of British exporters saw an increase in overseas sales in the first three months of the year, the latest UK Trade Barometer report has shown.

The findings released by UK’s largest group of airports – MAG – and the Growing Together Alliance of regional business bodies, also showed growing ambitions of UK exporters to break into new markets for the first time, with European countries, Canada, Australia and Brazil and Japan among the top picks for businesses to start selling their goods. However, amid ongoing trade negotiations, just 13% of businesses sought to break the US market in Q2, despite this country seeing increased sales by most exporters, highlighting that the UK economy will likely have some protection from tariff turbulence in the short term.

Business and Trade Secretary Jonathan Reynolds commented:

“I’m proud of our brilliant British businesses that sell around the world, and it is great to see that so many have increased their exports and seizing new opportunities.“

Andrew Macmillan, MAG Chief Strategy Officer, said:

“We are right to be proud of the British businesses that export their goods and services around the world, and it is positive to see so many increased sales or entered new markets in the first quarter of the year.

“It is also encouraging that the data shows firms are active in a diverse range of markets, all of which the UK is directly connected to by ports and airports up and down the country.

“There is clear evidence that cities and regions with strong concentrations of exporting businesses are more productive and have higher living standards.

“Therefore, encouraging more companies across the UK to start trading in a diverse range of overseas markets will hold the key to the Government achieving its long-term growth mission.

“News of a trade deal with India, combined a new direct route to Manchester launching in July, is just one example of Government working together with business to connect key UK growth corridors to fast-growing global markets.”

A bigger long-term priority uncovered by the survey of more than 2,000 companies nationwide is getting more businesses outside of London to trade internationally at allResponses showed showed businesses in the North and Midlands are much less optimistic about growing global sales in Q2 of 2025 than those in London.

The significant regional variations reinforce calls for Local Growth Plans and the Government’s new Industrial Strategy to focus on supporting more businesses in high-growth sectors like life sciences, technology and advanced manufacturing to go global.

Henri Murison, Chief Executive of the Northern Powerhouse Partnership and Chair of the Growing Together Alliance, commented:

“The first edition of the trade barometer shows the baseline of business sentiment at the end of Q1 this year. By looking back immediately before the current period of uncertainty,  we can see the path by which both individual companies, and the country, can respond.

“Whether it be in the life sciences – which are strong in both the North and in the Ox-Cam corridor – or in areas like advanced manufacturing, the need for closer relationships with Europe can’t be underestimated. That is illustrated in particular by the importance of France and Germany – as well as the wider trading bloc – as key markets for all businesses surveyed.

“To capitalise on whatever trade deals the UK can negotiate, we also need a new Industrial Strategy that sees the Government’s work towards it significant growth ambitions with Metro Mayors and businesses in our regions.

“Whether it be key levers like innovation or transport connectivity, we know what has held us back in regions like the North in the past. Addressing these barriers will help tackle long-term productivity deficits and enable significant additional growth through exports.

“I am confident that – unlike “Levelling-Up”, which set our regions against one another, that we can see all parts of the country,  including London, the Central South or West of England all thrive alongside the North.”