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UK trade deficit narrows in August as imports drop
The UK's trade deficit narrowed in August, beating analysts' expectations.
The seasonally adjusted figures showed that, although exports had fallen, imports had fallen by even more.
According to data from the Office of National Statistics (ONS), the UK’s deficit on trade in goods and services was an estimated £1.9bn in August, compared with £3.1bn in July.
The UK is a huge exporter of services and this is reflected in the data. From the report:
In August 2014 there was a deficit of £9.1 billion on goods partly offset by an estimated surplus of £7.2 billion on services. The trade in goods deficit narrowed by £1.3 billion compared with July 2014. However, the main factor behind the deficit narrowing was not an increase in exports but a large fall in imports from non-EU countries.
Here is how the balance breaks down. First overall trade:
And the trade balance with EU countries:
Finally, non-EU countries:
