20-Year Record Trade Surplus
UK Machine Tool Sector registers a 20-year record trade surplus in 200514 March 2006
Exports of metal working machine tools from the UK were worth £438.0 million, an increase of +9.0% on 2004, while imports increased by +6.1% to £404.0 million, giving a trade surplus for 2005 of +£34.0 million, the highest since 1982; furthermore, the run of three consecutive trade surpluses from 2003-05 is the longest since the 1980-83 period.
The growth in exports was generated by trade with the European Union, with deliveries to the EU25 growing by +21.2% compared to 2004; growth for the EU15 countries was even more rapid at +24.0%. Although exports to the rest of the world were -1.8% lower than in 2005, there were still some countries with significant growth, led by China (+43.6%) and India (+54.1%).
In contrast, import growth was generated from outside of Europe, with arrivals from the European Union slightly lower than in 2004 (-1.6% for the EU15 and -1.0% for the EU25 countries). Outside of Europe, increases in imports were led by Japan (+26.6%) and Taiwan (+53.0%).
Analysis by product type shows that the main contributions to the trade surplus came from CNC Grinding Machines (+£30.1 million) and Machining Centres (+£20.2 million). The most significant trade deficits were for CNC Lathes (-£21.2 million) and Sawing Machines (-£20.1 million). Metal cutting machines accounted for 79% and metal forming machines for 21% of both exports and imports.
UK exports of machine tools in the 4th quarter of 2005 were worth £125.0 million, a rise of +17.1% compared to the 3rd quarter of 2005 and +20.3% higher than in the 4th period of 2004. On the same basis, UK imports were worth £103.5 mil, +7.7% up on the previous quarter, but -3.7% down on the same period a year ago.