UK Trade Deficit Unchanged in July


The UK’s deficit on trade in goods and services was almost unchanged at GBP 2.87 billion in July 2017, compared with a downwardly revised GBP 2.91 billion gap in June.

Exports of goods and services from the United Kingdom decreased by 0.2 percent to GBP 49.63 billion in July from GBP 49.72 billion in June, as decreases in sales of erratics (-16.6 percent) and oil (-16.4 percent) more than offset export increases of food, beverages and tobacco (8.1 percent) and finished manufactures (1.2 percent). Among major trading partners, sales of goods to the EU shrank by 0.3 percent, as sales declined to the Netherlands (-5.5 percent), France (-3.8 percent) and Germany (-1.7 percent). Also, exports of goods to non-EU countries dropped 0.4 percent, namely to Switzerland (-40.6 percent), Norway (-21.2 percent) and Canada (-8.4 percent).

Imports of goods and services to the United Kingdom declined by 0.2 percent to GBP 52.50 billion from GBP 52.63 billion in the previous month, dragged by lower purchases of basic metals (-4.9 percent) and semi-manufactures (-4.4 percent). Among trading partners, imports of goods from non-EU countries fell by 0.9 percent, as purchases fell from Switzerland (-21 percent), Canada (-20.7 percent), Hong Kong (-8.1 percent) and the US (-5.6 percent). Meanwhile, imports of goods from the EU increased by 0.5 percent, mainly from Ireland (11.7 percent) and Italy (5.1 percent).

In the three months to July, the trade deficit widened by GBP 0.4 billion from the previous three-month period to GBP 8.6 billion, primarily due to a widening of the trade in goods deficit by GBP 1.1 billion, partially offset by a widening of the trade in services surplus by GBP 0.7 billion.

ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/8/2017 9:16:02 AM