UK trade deficit narrows in June

| August 10, 2010 | 0 Comments

The Office for National Statistics (ONS) has today revealed the UK’s trade gap narrowed in June, due to a surge in exports.

According to the ONS, exports of goods to non-EU countries were at an all-time high at £10.750 billion, while exports to the rest of the world were the highest in almost two years at £22.444 billion.

Meanwhile, the value of goods imports rose 1% on the month.

The ONS said the UK’s goods trade deficit fell to £7.4 billion in June, down from £8 billion in May. The figure was lower than expected and is now at a four-month low, primarily due to the boost in exports.

However, the news was met with caution by analysts.

“It’s hard to get too excited [about the narrowing deficit],” said Vicky Redwood at Capital Economics.

“The narrowing did little more than reverse May’s sharp widening in the deficit. We continue to doubt that any trade boost will be big enough in the near-term to offset the effects of the severe fiscal squeeze on consumers and the domestic economy,” she added.

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