UK trade deficit narrows by less than expected
BRITAIN’S trade deficit narrowed less than expected in the penultimate month of last year, according to data released yesterday.
The figures, published by the Office for National Statistics (ONS), also showed a trend of UK companies’ exports heading beyond Europe’s borders.
“In volume terms exports of goods to the EU were 3.7 per cent lower in the three months to November than a year earlier,” the ONS said, referring to data that excludes oil and other erratic items.
“Exports to the rest of the world rose 6.8 per cent [in volume].”
Overall, the trading of services produced a surplus of £5.7bn – down from £5.8bn in October – which was weighed down by a £9.2bn deficit for visible goods, slightly down from October’s £9.5bn deficit.
The resultant total trade balance was a £3.5bn deficit, only slightly down from October’s level of £3.7bn.
“This brings the cumulative deficit for January to November of 2012 to £34.5bn, up from £22.2bn in the same months of 2011,” said Citi economist Michael Saunders. The UK remains “unable to generate export-led growth at a decent pace,” he added, with GDP likely to stay flat.