UK Trade Deficit Hits New Record

The UK's goods trade deficit widened to a record high in July after imports rose sharply and exports fell from the previous month, figures show.

The total trade deficit - which includes services - widened to its highest in almost five years.

The deficit on goods and services rose to £4.9bn, against £3.9bn in June, the Office for National Statistics said.

The goods deficit was £8.7bn, against £7.5bn a month earlier, the biggest deficit since figures began in 1998.

However, trade in services produced a surplus of £3.8bn.

Imports increased by 3.1% on the month in value terms, which was largely driven by an increase in imports of organic chemicals, pharmaceuticals and oil. Exports including chemicals and oil fell by 0.9%.

UK Trade Deficit Hits New Record, BBC
9/14/2010 1:12:13 PM