According to a recent study conducted by Lloyds Bank and IHS Markit, British luxury exports are experiencing a notable increase. Despite facing economic challenges in the UK, the luxury sector is flourishing, with iconic British brands like Burberry witnessing a surge in exports. This positive growth trajectory has been evident throughout the first three quarters of this year.
The study’s index, which encompasses luxury and sporting goods within the ‘other manufacturing goods’ category, displayed a reading of 52.3 in Q3. This marked an improvement from previous readings of 52.3 in Q1 and 51.5 in Q2. Any figure above 50 indicates expansion in the sector. One potential factor contributing to this growth could be the depreciation of the British pound, rendering British products more competitively priced for global consumers.
Despite a dip in orders within the broader UK manufacturing segment, with a reading of 46.5 in Q3 compared to 46.9 in Q2, the luxury sector appears to be holding steady. Nevertheless, not all segments of the industry are experiencing similar success, as evidenced by the textile sector’s reading of 45 in the third quarter.
Prominent luxury brands such as Burberry, Mulberry, British jewellers, and Brompton are all playing a significant role in driving the positive export growth within the British luxury sector. Despite uncertainties surrounding Brexit, the current data suggests that the sector remains resilient and is actively expanding its global reach. With exports on an upward trajectory, the outlook for British luxury brands appears promising.
For further information on this topic, please visit the following links:
Lloyds Bank
IHS Markit
