UK trade deficit widens in June

| August 9, 2011 | 0 Comments

The Office for National Statistics (ONS) has today revealed the UK trade gap widened to £8.8 billion in June – the biggest deficit since December 2010 and higher than expectations of £8.1 billion.

The figures come on the same day the ONS revealed UK factory output fell by 0.4% in June after rising by 1.8% in May.

The reading surprised economists who had expected a 0.2% rise.

Both sets of figures have raised further fears about the strength of the economic recovery and London’s FTSE 100 lost 5.5% after the data was released to.

Meanwhile, the ONS said exports fell by £1.2 billion or 4.8% to £24 billion, while imports fell 2.4% to £32.9 billion.

As a result of the data and the fragile economy, many analysts believe the Bank of England may reintroduce its quantitative easing programme – a scheme designed to stimulate the economy.

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