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UK trade deficit narrows slightly

The UK’s deficit on trade in goods and services was reduced to £4.6bn in September, compared with a deficit of £4.9bn in August according to the Office for National Statistics. In July, the deficit recorded was the highest for five years, so at least we have two months of figures moving in the right direction.

When we look at the breakdown we can see improvements in both the goods and services side.

Balance of Trade Source: ONS

Services continued to provide a surplus, which amounted to £3.7bn in September, compared to £3.6bn in August. Although the trade in goods is generally showing a considerable deficit, this narrowed last month from £8.5bn in August to £8.2bn in September.

Overall our trading position with both EU and non-EU countries improved. With the EU the deficit on trade narrowed from £3.8bn to £3.6bn over the two months, with exports rising by £0.1bn and imports falling by £0.1bn.

With non-EU countries the deficit narrowed from £4.7bn in August to £4.6bn in September. Here, exports rose by £0.5bn and imports rose by £0.4bn.

There was also an increase in prices compared with August, with our export prices rising by 0.7% and import prices rising by 0.8%.

Good news on the whole, but we have to remember that these trade figures will be revised in coming months as more information filters in.

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Posted in Balance of Trade

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