UK trade deficit widens to �1.6b in June

The UK trade deficit almost doubled in June to £1.6bn, from £885m the previous month, the Office for National Statistics (ONS) has said, reports BBC. A deficit of £9.2bn on goods was partly offset by a £7.6bn surplus on services. Exports fell slightly, reflecting in part weaker demand in the eurozone. Despite the sharp monthly increase, the deficit for the second quarter was, at £4.9bn, considerably smaller than the £7.5bn deficit recorded in the first three months of the year.
“Concerns about manufacturers being hammered by a stronger sterling and flat eurozone demand may have been premature, although encouraging as this may be, one decent quarter doesn’t necessarily signal that big contributions to [economic] growth from net trade are around the corner,” said Lee Hopley, chief economist at manufacturing group EEF. “Indeed, the Bank of England’s cautionary tone on world trade growth in its Inflation Report suggest there are still downside risks a-plenty.” Total goods exports in June totalled £24.9bn, while goods imports rose to £34.1bn. The US was the UK’s biggest export market, worth £4.4bn in June, followed by Germany, at £2.7bn. France, the Netherlands, the Irish Republic and China are the next biggest export markets.

 

UK trade deficit widens to �1.6b in June

The UK trade deficit almost doubled in June to 1.6bn, from 885m the previous month, the Office for National Statistics (ONS) has said, reports BBC. A deficit of 9.2bn on goods was partly offset by a 7.6bn surplus on services. Exports fell slightly, reflecting in part weaker demand in the eurozone. Despite the sharp monthly increase, the deficit for the second quarter was, at 4.9bn, considerably smaller than the 7.5bn deficit recorded in the first three months of the year. Concerns about manufacturers being hammered by a stronger sterling and flat eurozone demand may have been premature, although encouraging as this may be, one decent quarter doesnt necessarily signal that big contributions to [economic] growth from net trade are around the corner, said Lee Hopley, chief economist at manufacturing group EEF. Indeed, the Bank of Englands cautionary tone on world trade growth in its Inflation Report suggest there are still downside risks a-plenty. Total goods exports in June totalled 24.9bn, while goods imports rose to 34.1bn. The US was the UKs biggest export market, worth 4.4bn in June, followed by Germany, at 2.7bn. France, the Netherlands, the Irish Republic and China are the next biggest export markets.