British factory exports experienced a sharp decline, marking the most significant drop in nearly five years, according to a survey on Thursday.
This decrease has been attributed to the ongoing trade war led by U.S. President Donald Trump and a recent increase in employer taxes in the U.K.
S&P Global survey showed that there has been a decrease in foreign demand for British manufactured goods in the United States, Europe, and China.
The rate at which exports have declined is the most rapid since May 2020, during the height of the COVID-19 pandemic.
The S&P Global Purchasing Managers’ Index, which measures the performance of the U.K.’s manufacturing sector, registered at 45.4 in April.
This figure is below the 50.0 threshold that separates growth from contraction, marking the seventh consecutive month of contraction. Despite this, the reading for April is an improvement from March’s 44.9 and the preliminary reading for April which was 44.0.
The output of the manufacturing sector also fell for the sixth month in a row, indicating continued struggles for the industry.
This data underscores the ongoing challenges faced by the manufacturing sector in the UK amid global trade tensions and domestic economic pressures.
