U.K. Trade Gap Narrows

The U.K. trade deficit narrowed slightly in September as exports rose by more than imports, in a tentative sign that sterling's weakness may finally be starting to boost demand for U.K.-produced goods.

The Office For National Statistics reported on November 9 that the U.K.'s global goods trade deficit declined to £8.2 billion ($13.23 billion) from a record £8.5 billion in August and July.

September's shrinking in the deficit was spurred by a £500 million, or 2.2% increase, in total exports, while total imports rose by a more modest £200 million, or 0.8%.

However, the global goods trade deficit still widened in the third quarter overall to £25.2 billion from £23.2 billion in the second quarter.

The trade balance of oil improved slightly in September, with a deficit of £700 million, down from £800 million in August. But in the third quarter, the oiltrade balance logged a deficit of £2.2 billion, more than double the £1 billion deficit posted in the second quarter.

The non-European Union trade deficit narrowed somewhat to £4.6 billion in September from £4.7 billion in August as exports rose by £500 million, a little more than the £400 million gain in imports. Trade with the EU, which accounts for around two-thirds of U.K. exports, also improved slightly as the trade deficit with the bloc slipped to £3.6 billion from £3.8 billion in August.

U.K. Trade Gap Narrows

TradingEconomics.com, WSJ
11/11/2010 3:08:56 AM