UK goods trade deficit stable
Britain’s goods trade deficit stayed largely unchanged in March despite a rebound in exports to countries outside the European Union as overall import values also grew to a record level, official data showed.
The Office for National Statistics said the goods trade deficit inched down to £8.56bn in March from £8.59bnin February. Economists had forecast a gap of £8.4bn.
The goods trade deficit with non-EU countries fell more to £4.1bn from £4.87bn in February and against forecasts for a gap of £4.65bn.
Both overall goods exports and imports values hit a record high in March. Export growth was driven by sales of pharmaceuticals and cars to non-EU countries such as the United States
and China, but also to Germany.
Britain’s economy slipped back into recession in the first quarter of 2012, and surveys from the manufacturing sector showed a steep decline in export orders in April, mainly due to slower demand from the euro zone.
The increase in import values was driven by higher imports of oil. Import prices of goods rose by 1.2 per cent on the back of higher oil prices.
The escalation of the euro zone debt crisis together with a rise in the pound has stoked fears that overseas demand for British goods will weaken, making an economic recovery harder.
However, Germany posted unexpectedly strong growth in the first quarter, though the currency bloc as a whole is still in danger of recession.