Partner Article

UK trade deficit grows

The UK’s trade deficit has rocketed to £4.3bn in June, from £2.7bn in May, according to the Office for National Statistics.

A deficit of £10.1bn on goods was only partly offset by a surplus of £5.8bn on services.

The ONS suggest the number of public holidays between May and June may have affected the data, although some analysts have disputed this assertion.

Exports to the EU fell by £0.9bn to £11.bn, and imports from the the EU fell by £0.4bn at £16.5bn.

Commenting on the statistics, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said: “It is disappointing to see such a large trade deficit in June. Although the monthly figures would have been affected by public holidays, such as the Diamond Jubilee, it is worrying that the trade deficit in the second quarter as a whole was much higher than in the first.

“Underlying export volumes fell by 3.3% in the second quarter, while import volumes fell by only 0.5%. There is no question that British exporters are facing major challenges as a result of problems in the eurozone, but the rebalancing of the UK economy towards exports is taking too long.

“British exporters have untapped potential to expand, but they need more government support to help them compete globally and diversify towards growing markets outside the EU. We need firmer action in key areas such as trade finance, promotion and insurance. More infrastructure spending and the early creation of a business bank would make a major contribution towards stronger growth in UK exports.”

This was posted in Bdaily's Members' News section by Tom Keighley .