UK Car Production Declines in July as Exports Weaken - Forex News by Strategia Forex
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UK Car Production Declines in July as Exports Weaken

Posted Thursday, August 29, 2019 by
Arslan Butt • 1 min read

According to data released by the Society of Motor Manufacturers and Traders (SMMT), new car production declined by 10.6% YoY in July in Britain over weakening external demand. Sales of diesel-powered vehicles have been declining in Europe while car demand in Chinese markets have been falling lower, driving factories to produce fewer units.

Car exports have declined by 14.6% even as domestic demand for cars climbed 10.2% higher during July. However, strong domestic demand was unable to support the sector much, where 8 out of 10 cars manufactured are exported.

Overseas shipments of cars has declined by 20.2% since January 2019, while overall car production in the UK has declined by 13.5% since the beginning of this year. According to SMMT Chief Executive, Mike Hawes, “Another month of decline for UK car manufacturing is a serious concern. The sector is overwhelmingly reliant on exports and the global headwinds are strong, with escalating trade tensions, softening demand and significant technological change.”

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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