UK Trade Deficit at 3-Month High


UK trade gap widened to GBP 4.14 billion in October compared to a downwardly revised GBP 1.07 billion in September as imports surged 5.4 percent and exports declined 1.6 percent. Excluding oil and other volatile goods, the deficit was the highest since records began in 1998.

Total imports rose 5.4 percent to GBP 46.32 billion compared to the previous month. GBP 2.3 billion of the increase was attributed to imports of goods, specifically imports of machinery and transport equipment (up GBP 0.9 billion), chemicals (up GBP 0.5 billion) and fuels (up GBP 0.5 billion).

Total exports shrank 1.6 percent to GBP 42.18 billion; all of this decrease is attributed to goods, specifically chemicals, which declined by GBP 0.8 billion.

The deficit on trade in goods was GBP 11.8 billion in October 2015; a GBP 3.0 billion widening from September 2015.

Imports of goods from EU and non-EU countries each rose by GBP 1.2 billion between September and October; a 7.8 percent growth in imports from countries outside the EU and a 6.4 percent growth in imports from countries within EU. The increase in imports from the EU mainly reflects an increase in imports of machinery and transport equipment (up GBP 0.6 billion) and chemicals (up GBP 0.3 billion). 

Exports to countries outside the EU decreased by GBP 0.9 billion (6.6 percent), mainly reflecting a GBP 0.7 billion fall in exports of chemicals. Exports to the EU rose by GBP 0.2 billion (1.4 percent), partially offsetting the rise in non-EU exports.

In the 3 months to October 2015, the UK’s deficit on trade in goods and services was estimated to have been GBP 8.4 billion; widening by GBP 2.4 billion from the 3 months to July 2015.


UK Trade Deficit at 3-Month High


ONS | Joana Taborda | joana.taborda@tradingeconomics.com
12/10/2015 10:56:42 AM