UK trade: December 2021

Total value of UK exports and imports of goods and services in current prices, chained volume measures and implied deflators.

Nid hwn yw'r datganiad diweddaraf. Gweld y datganiad diweddaraf

11 February 2022

We have corrected an error in the Main Points and under the heading Key Trends. The previous version read "Imports from non-EU countries remain higher than from EU countries for the 12th consecutive month". It should have read "Imports from non-EU countries remain higher than from EU countries for the 11th consecutive month".

This error only affects the commentary in the statistical bulletin; all data published in the associated tables are correct. This happened because of a human error. We apologise for any inconvenience.

Cyswllt:
Email Hannah Donnarumma

Dyddiad y datganiad:
11 February 2022

Cyhoeddiad nesaf:
11 March 2022

1. Main points

  • Total imports of goods, excluding precious metals, increased by £0.6 billion (1.4%) in December 2021, because of a £0.6 billion (2.5%) rise in imports from non-EU countries while imports from EU countries remained flat.

  • Imports from non-EU countries remain higher than from EU countries for the 11th consecutive month and continue to be driven by increasing imports of fuels.

  • Total exports of goods, excluding precious metals, increased by £1.1 billion (3.9%) in December 2021, driven entirely by a £1.0 billion (7.4%) increase in exports to EU countries while exports to non-EU countries remained flat.

  • The total trade in goods and services deficit, excluding precious metals, narrowed by £0.2 billion to £12.8 billion in Quarter 4 (Oct to Dec) 2021.

  • The trade in goods deficit, excluding precious metals, narrowed by £0.2 billion to £43.0 billion in Quarter 4 2021, as imports of goods increased by £6.1 billion (5.1%) and exports increased by £6.3 billion (8.2%).

  • The trade in services surplus reduced slightly in Quarter 4 2021 to £30.2 billion.

  • Annual imports and exports in 2021 have increased by 8.4% and 4.9% respectively compared with 2020, however both remain lower than 2018 levels.

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Please note that all trade figures are excluding non-monetary gold and other precious metals unless otherwise stated. This is because movements in non-monetary gold (NMG), an important component of precious metals, can be large and highly volatile, distorting underlying trends in goods exports and imports.

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3. Monthly trade analysis

Total imports of goods, excluding precious metals, rose by £0.6 billion (1.4%) in December 2021, with imports from non-EU countries increasing by £0.6 billion (2.5%) and imports from EU countries remaining at a similar level to November 2021. For imports from the EU, small increases in machinery and transport equipment, material manufactures, and fuels have been offset by small decreases in all other commodities (Figure 2).

Increases in imports from non-EU countries were driven by increasing imports of fuels, which were partially offset by decreasing imports of material manufactures. Imports of fuels from non-EU countries increased by £0.8 billion in December 2021 and remain at historically high levels. This increase was driven by further increases in wholesale gas prices. Imports of gas from Norway, the UK's largest gas supplier, rose compared with November, while imports from the United States and Russia also increased.

With full customs controls on imports starting on 1 January 2022, we have investigated whether there is evidence of stockpiling in the latest data, similar to stockpiling of some commodities seen at the end of 2020. We have not found any evidence of stockpiling, and patterns of UK trade in this bulletin reflect usual, seasonal patterns of imports.

Figure 2: Imports of goods increased in December 2021, driven by increasing imports of fuels and machinery and transport equipment

EU and non-EU goods imports by commodity December 2019 to December 2021

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Total exports of goods, excluding precious metals, rose by £1.1 billion (3.9%) in December 2021, driven by a £1.0 billion (7.4%) increase in exports to EU countries while exports to non-EU countries remained at similar levels to November 2021. The gap for exports to EU and non-EU countries has widened, with exports to the EU being greater by £1.1 billion.

Increasing exports to the EU were driven by a £0.5 billion increase in chemical exports, a £0.4 billion increase in machinery and transport equipment exports, and a £0.1 billion increase in material manufactures exports (Figure 3). The increase in chemical exports was predominately driven by increasing exports of organic chemicals to Ireland. This increase in chemical exports continues a strong cycle of growth and decline in the trade of chemicals with Ireland, which has occurred throughout 2021. The decrease in fuel exports to the EU was because of decreased exports of crude oils to the Netherlands and Italy.

Exports to non-EU countries remained at a similar level to November 2021 with a small increase of £0.1 billion in chemical exports being offset by a £0.1 billion decrease in exports of machinery and transport equipment.

Figure 3: Exports of goods increased in December 2021, driven by increasing exports of chemicals to EU countries

EU and non-EU goods exports by commodity December 2019 to December 2021

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4. Total trade, three-monthly and annual movements

Total imports of goods increased by £6.1 billion (5.1%) in Quarter 4 (Oct to Dec) 2021 when compared with Quarter 3 (July to Sept) 2021, driven by increases in imports from non-EU countries, while imports from EU countries fell slightly. Total exports of goods increased by £6.3 billion (8.2%) over the same period, because of increasing exports to both EU and non-EU countries.

Increasing imports from non-EU countries in Quarter 4 2021 were driven by a £4.5 billion increase in imports of fuels, alongside increases to miscellaneous manufactures, and machinery and transport equipment (Figure 4). Imports from the EU fell slightly in Quarter 4 2021, with decreases in imports of machinery and transport equipment, and crude materials offsetting increased imports of chemicals and fuels.

Exports to EU countries increased driven by increasing exports of fuels (£1.4 billion), chemicals (£1.3 billion) and machinery and transport equipment (£0.5 billion) in Quarter 4 2021. The increase in exports to non-EU countries in Quarter 4 2021 was driven by a £1.5 billion increase in exports of machinery and transport equipment, with chemicals and miscellaneous manufactures also increasing.

Figure 4: Imports of fuels from non-EU countries increased in Quarter 4 (Oct to Dec) 2021 when compared with Quarter 3 (July to Sept) 2021

Changes in imports and exports by goods commodity group, excluding unspecified goods, Quarter 4 (Oct to Dec) 2021 compared with Quarter 3 (July to Sept) 2021

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The total trade deficit, excluding precious metals, narrowed by £0.2 billion to £12.8 billion in Quarter 4 (Oct to Dec) 2021. Total imports increased by £5.9 billion to £170.2 billion while total exports increased by £6.1 billion to £157.4 billion (Figure 5).

The trade in goods deficit narrowed by £0.2 billion to £43.0 billion in Quarter 4 2021, driven by increasing exports. Early estimates suggest the trade in services surplus reduced slightly in Quarter 4 2021 to £30.2 billion.

Imports of goods in December 2021 were £0.6 billion (1.5%) higher than December 2020 levels. Exports in December 2021 have also increased by £0.6 billion (2.1%) since December 2020 (Table 2). As 2020 data were strongly impacted by the coronavirus (COVID-19) pandemic, we have also compared them against 2018 trade data. When compared with December 2018, imports increased by £1.6 billion (3.8%) while exports decreased by £0.1 billion (0.5%).

Total annual imports of goods increased by £36.0 billion (8.4%) to £465.5 billion in 2021 when compared with 2020 but were £23.4 billion (4.8%) lower than 2018. Similarly, annual total exports of goods increased by £14.5 billion (4.9%) to £312.4 billion in 2021 when compared with 2020 but were £36.8 billion (10.5%) lower than 2018.

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5. Explore UK trade in goods country-by-commodity data for 2021

Explore the 2021 trade in goods data using our interactive tools. Our data breaks down UK trade in goods with 234 countries by 125 commodities.

Use our map to get a better understanding of what goods the UK traded with a country. Select a country by hovering over it or using the drop-down menu.

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Notes:
  1. For more information about our methods and how we compile these statistics, please see Trade in goods, country-by-commodity experimental data: 2011 to 2016. Users should note that the data published alongside this release are official statistics and no longer experimental.

  2. These data are our best estimate of these bilateral UK trade flows. Users should note that alternative estimates are available, in some cases, through the statistical agencies for bilateral countries or through central databases such as UN Comtrade.

  3. This interactive map denotes country boundaries in accordance with statistical classifications set out within Appendix 4 of the Balance of Payments (BoP) Vademecum (PDF, 1.1MB) and does not represent the UK policy on disputed territories.

You can also explore the 2021 trade in goods data by commodity, such as  car exports to the EU and UK tea or coffee imports.

Select a commodity from the drop-down menu or click through the levels to explore the data.

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Notes:
  1. For more information about our methods and how we compile these statistics, please see Trade in goods, country-by-commodity experimental data: 2011 to 2016. Users should note that the data published alongside this release are no longer experimental.

  2. These data are our best estimate of these bilateral UK trade flows. Users should note that alternative estimates are available, in some cases, via the statistical agencies for bilateral countries or through central databases such as UN Comtrade.

  3. These interactive charts denote country boundaries in accordance with statistical classifications set out within Appendix 4 of the Balance of Payments (BoP) Vademecum (PDF, 1.1MB) and does not represent the UK policy on disputed territories.

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6. Revisions

In accordance with the National Accounts Revisions Policy, the data in this release have been revised from January 2021 to November 2021 for both goods and services.

HM Revenue and Customs unscheduled correction

Following the publication of UK trade: April 2021, an error was identified in the HM Revenue and Customs (HMRC) Overseas Trade data used to compile the Office for National Statistics' (ONS) UK Trade statistics.

Revisions for the period January 2020 to February 2021 were published in our UK trade: May 2021 bulletin on 9 July 2021, taking place outside of the usual National Accounts revisions period in order to ensure the ONS Trade figures reflected the most up-to-date position. Revisions for pre-2020 will be incorporated in the annual Blue Book publication in October 2022.

We have published an article providing users with an indicative estimate of the likely scale and impact of these corrections on the ONS trade statistics before their publication in the August 2022 UK trade statistics, due to be published in October 2022.

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7. UK trade data

UK trade: goods and services publication tables
Dataset | Released 11 February 2022
Monthly data on the UK's trade in goods and services, including trade inside and outside the EU.

UK trade time series
Dataset MRET | Released 11 February 2022
Monthly value of UK exports and imports of goods and services by current price, chained volume measures (CVMs) and implied deflators (IDEFs).

UK trade in goods by classification of product by activity time series
Dataset | Released 15 December 2021
Quarterly and annual time series of the value of UK imports and exports of goods grouped by product. Goods are attributed to the activity of which they are the principal products.

Other related trade data
Web page | Released 11 February 2022
Other UK trade data related to this publication. These include trade in goods for all countries with the UK, monthly export and import country-by-commodity trade in goods data, and revisions triangles for monthly trade data.

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8. Glossary

Chained volume measures (CVMs)

CVM estimates are a "real" measure in that it has had the effect of inflation removed to measure the change in volume between consecutive periods, fixing the prices of goods and services in one period (the base year).

Current price measures (CPs)

These estimates measure the actual price paid for goods or services and are not adjusted for inflation. Unless otherwise stated, all current price data are provided in £ million and are seasonally adjusted.

Inflation

Inflation is the change in the average price level of goods and services over a period of time.

Implied deflators (IDEFs)

An IDEF shows the implied change in average prices for the respective components of the trade balance, for example, the IDEF for imports will show the average price movement for imports.

Precious metals and non-monetary gold

Precious metals include precious metals, silver, platinum and palladium, and it forms part of the commodity group "unspecified goods". Non-monetary gold comprises the majority of this group and is the technical term for gold bullion not owned by central banks.

Trade balance

The trade balance is the difference between exports and imports or exports minus imports. When the value of exports is greater than the value of imports, the trade balance is in surplus. When the value of imports is greater than the value of exports, the trade balance is in deficit. The balance is sometimes referred to as "net exports".

A full Glossary of economic terms is available.

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9. Measuring the data

Making our published spreadsheets accessible

Over the coming months, all Office for National Statistics (ONS) datasets will be reviewed to ensure they meet the accessibility standards outlined in the Government Statistical Service (GSS) guidance on releasing statistics in spreadsheets. This is to ensure that all GSS outputs meet Web Content Accessibility Guidelines, a legal requirement set out in The Public Sector Bodies (Websites and Mobile Applications) Accessibility Regulations 2018.

We welcome any feedback on these changes. Share your feedback by emailing the statistical contact at the top of the page.

Coronavirus (COVID-19) data impacts

Because of the challenges of data collection during the coronavirus pandemic, we have experienced challenges around the level of survey and data returns for this trade release.

Data sources

Data from the quarterly International Trade in Services (ITIS) Survey make up over 50% of trade in services data. View the UK trade QMI for more detail.

Data from the International Passenger Survey (IPS) are the main source for travel services, making up around 8% of total trade. Following suspension of the survey in 2020 the IPS has now partially resumed. We continue to use the statistical model to produce our regular travel estimates and, for our Quarter 1 (Jan to Mar) 2021 dataset onwards, will use the IPS deliveries to inform these modelled estimates. We will review this decision after deliveries of IPS data fully resume. View the UK trade QMI for more detail.

Data from HM Revenue and Customs (HMRC) make up over 90% of trade in goods value and are the main source. We have worked closely with HMRC to prepare for the change in collection of customs data, which occurred at the end of the EU exit transition period. View further information in Impact of EU exit on the collection and compilation of UK trade statistics.

In line with international standards, our headline trade statistics contain the UK's exports and imports of non-monetary gold. View more information about the ONS' recording of non-monetary gold.

Unless otherwise specified, data within this bulletin are in current prices. This means they have not been adjusted to remove the effects of inflation.

Method

Trade is measured through both exports and imports of goods and services. Data are supplied by over 30 sources including several administrative sources, with HMRC being the largest for trade in goods.

View more detailed information about the methods used to produce UK trade statistics on the UK trade methodology web pages. More quality and methodology information on strengths, limitations, appropriate uses, and how the data were created is available in the UK trade QMI.

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10. Strengths and limitations

National Statistics designation status

The UK Statistics Authority suspended the National Statistics designation of UK trade on 14 November 2014. We have now responded to all of the specific requirements of the reassessment of UK trade and, as part of our engagement with the Office for Statistics Regulation team, we are sharing our continuous improvement and development plans to support UK trade statistics regaining National Statistics status. We welcome feedback on our new trade statistics, developments and future plans by email to trade@ons.gov.uk.

Trade asymmetries

Asymmetries can be caused by a range of conceptual and measurement variations between the estimation practices of different countries. Statistical agencies are likely to have different source data, estimation methods, and methodological, geographical and definitional differences. More information on trade in goods asymmetries is published by HM Revenue and Customs (HMRC), while analysis on trade in services asymmetries is published by the Office for National Statistics (ONS).

More quality and methodology information on strengths, limitations, appropriate uses, and how the data were created is available in the UK trade QMI.

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Manylion cyswllt ar gyfer y Bwletin ystadegol

Hannah Donnarumma
trade@ons.gov.uk
Ffôn: +44 1329 447648