A nationwide survey has revealed a significant disparity in export confidence and activity between firms based in London and those in the North and Midlands. While export performance improved overall in Q1 2025, regional businesses outside the capital remain less optimistic about growth, prompting renewed calls for targeted government support.
The UK Trade Barometer, launched by Manchester Airports Group (MAG) and the Growing Together Alliance, surveyed more than 1,500 businesses nationwide. The findings show that while 68% of London firms already trade internationally, only 39% of companies in the North and 43% in the Midlands and East of England do the same.
In Q1, 63% of exporters increased sales to existing markets and 47% entered new ones. However, expectations for further growth were uneven: 41% of London-based firms plan to expand into new markets in Q2, compared to 19% in the North and 21% in the Midlands. Similarly, only 24–27% of firms outside the capital expect increased sales in current export markets, compared to around 50% in London.
Despite geopolitical uncertainty, notably around potential US tariffs, 41% of firms already exporting to the US anticipate further growth there in Q2. However, future diversification appears to be a priority, with EU markets, especially France, Germany, Italy, Belgium, and Spain, ranking alongside Canada, Australia, Brazil, and Japan as top targets for market entry.
MAG and the Growing Together Alliance, which includes six major regional business groups, argue that a national strategy is needed to equip firms outside London with better trade infrastructure and support. The data suggests that boosting regional exports could improve productivity and narrow the economic gap with the capital.
The barometer will be updated quarterly to monitor exporter sentiment and identify trends in global trade activity from different parts of the UK.
