UK’s trade deficit biggest since January

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The Office for National Statistics (ONS) revealed that the UK’s trade deficit widened to £7.2 billion in September from a deficit of £6.1 billion the previous month and well above analyst expectations of a £6.1 billion deficit.

The rise was attributed to a rise in car imports as the cash for bangers scheme helped foreign carmakers.

The cash for bangers scheme, which pays consumers £2,000 to get rid of their old cars, led to a larger than usual 30% boost of imports of cars, which outperformed the rise in exports.

Imports rose 7.5% to £26.6 billion in September compared with the previous month while exports rose 3.9% to £19.4 billion, said the ONS.

According to Trade Minister, Lord Davies, “The increase in exports - which is a significant increase - is good news for the UK economy.”

“We are a trading nation and this reflects a return to growth for the global economy. The competitive value of the pound makes the UK well-placed to benefit from increased global demand,” added Lord Davies.

September’s deficit was the biggest since January.

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