U.K. exports of goods to the European Union were above pre-Brexit levels for a second month in June, half a year after the country severed trade ties with the bloc.
Exports to the EU rose to £14.3 billion and imports increased to £19.1 billion, the latest data from the Office for National Statistics showed on Thursday. Still, that widened the U.K. merchandise deficit with the 27-member group by 7.4% compared to May.
Total exports of goods, excluding precious metals, fell 2.2% in June, driven by a 5.6% slump in exports to non-EU countries, mainly because of declines in medicinal and pharmaceutical products and cars.
All trade flows recorded double-digit growth compared with a year ago, with imports from non-EU countries (35%) and exports to the EU (29%) rising at the fastest rate.
Exports of live animals, meat and dairy products to the EU grew 14% in June compared to a year before. U.K. producers in the food and agriculture industries have been facing the burden of checks and regulations the bloc put forth. Exports of fish and shellfish, another key exporting industry, increased 17%, while exports of iron and steel jumped 61% from the year before.
Monitoring the shifting composition of U.K. trade with the EU and the rest of the world will be key to gauging the success of the government’s “Global Britain” project. The total trade deficit more than doubled to £5.2 billion in the second quarter.
Brexit’s impact on the U.K. economy will take a long time to materialize fully.
Despite a torrid start to the year, U.K. exports to Europe have largely recovered, but are still lagging the wider rebound in global trade, according to James Smith, an economist at ING, before the release. This suggests “businesses are adapting to the new processes,” he said.