UK trade deficit narrows in September, beating expectations
What with all the shmoozing David Cameron, George Osborne et al have been doing with various prospective trade partners in recent weeks, this should raise a smile on Downing Street: the UK's trade deficit narrowed by £1.6bn between August and September.
Figures by the Office for National Statistics suggested the trade deficit on goods fell to a positively svelte £9.4bn in September, from £10.8bn in August – against expectations of £10.6bn.
Exports of goods increased by £600m to £24bn, the ON said, driven largely by exports of chemicals. Meanwhile, imports of goods fell by £900m to £33.3bn, thanks to a £1bn fall in imports of "unspecified goods".
But economists were cautious on the news, pointing out that the trade deficit actually widened by £5.9bn between the second and third quarters.
“This is disappointing because it confirms our assessment that the improvement recorded in the second quarter was only temporary," said David Kern, chief economist at the British Chambers of Commerce.
“In addition to the unsustainably large trade deficit, the total current account deficit is even larger as a result of a large deficit in net income from foreign investment.
“Against this background we clearly need a national strategy that will help our exporters to achieve their export ambitions.”