UK Trade Deficit Narrows in April


Seasonally adjusted, the UK’s deficit on trade in goods and services was estimated to have been £2.6 billion in April, compared with a deficit of £3.2 billion in March. The narrowing of the deficit in April is mainly due to the UK's trade in goods with the EU, particularly that it was estimated that imports from the EU fell by around £1.3 billion.

The value of UK exports decreased by 1.3 percent between March 2013 and April 2013. The value of imports decreased by 2.7 percent over the same period. The deficit on trade in goods was around £0.5 billion higher in the three months to April than in the previous three months. However, trade in oil and in erratic items both narrowed the deficit over this period, excluding those, the deficit widened by £1.6 billion.

By country, the trade deficit with Germany was £1 billion higher in the three months February to April than in the preceding three months. The level of exports to Germany in that period was the lowest since the three months to October 2010. Exports to the United States increased over this period (by 7 percent) while imports were lower, so the surplus in trade in goods with the US rose to £3.7 billion. 

Sterling appreciated slightly in April and, probably as a result, both export and import prices fell slightly. Excluding erratic items and oil, both export and import volumes fell. Although monthly figures tend to be volatile, over a longer time period the latest data for export and import volumes show little movement, as they have for much of the last two years.

UK Trade Deficit Narrows in April


ONS | Nuno Fontes | nuno@tradingeconomics.com
6/7/2013 9:45:33 AM