Rebound in UK tropical wood imports continued in September but prospects less certain

Source:
ITTO/Fordaq
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UK imports of tropical wood and wood furniture products continued to rebound in September, with total value rising to USD97.6 million, 30% more than the previous month and the same level as in September 2019.

UK imports strengthened significantly in the third quarter, in line with the recovery in the broader economy and in construction activity and the housing market as lockdown measures eased during the period.

Prospects for the final quarter of the year are less certain, with signs that the economic recovery is losing momentum and the reintroduction of lockdown measures nationwide in England from 5 November, due to last for at least four weeks, in response to a sharp rise in COVID-19 cases.

Meanwhile, the Brexit transitional period comes to an end on 31 December and according to the Economist, reporting on 12th November, there is “no trade deal in sight”.

The Economist observes that “talks are continuing, but agreement is elusive on the most contentious issues: a level playing-field for competition (including limits to state aids), fisheries, and dispute resolution. Michel Barnier, the EU negotiator, says the talks are not currently on a path to a deal”.

The total value of UK imports of tropical wood and wood furniture into the UK in the third quarter of 2020 was USD245 million, 39% more than the second quarter of the year.

However, import value in the third quarter of this year was 19% below the same period of 2019. Import value in the January to September period this year was USD697 million, 27% less than the same period in 2019.

According to official UK statistics, GDP grew by 15.5% in the third quarter as restrictions on movement eased across June, July, August and September. Monthly GDP grew by 1.1% in September 2020, the fifth consecutive monthly increase following a record fall of 19.5% in April 2020.

September 2020 GDP was 22.9% higher than its April 2020 low. However, it remains 8.2% below the levels seen in February 2020, before the full impact of the COVID-19 pandemic. There was also a loss in momentum through the third quarter of 2020.

UK construction output volume rebounded strongly between May and August this year following a record fall of 41.2% in April. However the pace of recovery in the sector slowed in September with growth of only 2.9% during the month. The latest increase is being driven primarily by new housing.

Despite recent recovery in the UK construction sector, output in September was still 7.3% lower than the level in February 2020 before the full impact of the coronavirus.

The infrastructure and private new housing sub-sectors are the only components of construction to return to their peak since February 2020.

On a quarterly basis, the UK construction sector grew by 41.7% in the third quarter this year following a record fall of 35.7% in the second quarter.

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