Irish exports to the U.K. are down

Irish exports to the U.K., Ireland’s biggest trading partner, dropped 18% in August as the British economy slid into a recession and the euro’s advance against sterling eroded competitiveness. Weak sterling means Irish products are dearer in the U.K. Sales to the U.K. fell to €958m in August from €1.17billion in the same month a year earlier, according to the CSO today. Figures for the three months through September show sales abroad dropped 3.7% from a year earlier in the third quarter to €20.8billion. The euro has increased 14% against sterling this year, eroding Irish companies' profit margins. A housing slump and the financial crisis have pushed the U.K. to the brink of a recession, cooling demand for imports.