This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/2016/feb/09/uk-trade-deficit-widens-further-imports-exports

The article has changed 4 times. There is an RSS feed of changes available.

Version 1 Version 2
UK trade deficit widens further as exports suffer UK trade deficit widens further as exports suffer
(1 day later)
Britain’s trade deficit worsened in the final quarter of 2015 amid global market turmoil and a slowdown in emerging market growth that has hit exports.Britain’s trade deficit worsened in the final quarter of 2015 amid global market turmoil and a slowdown in emerging market growth that has hit exports.
The shortfall between exports and imports widened from £8.6bn in the third quarter to £10.4bn, fuelling concerns that UK’s deteriorating trading position will be a drag on GDP growth this year.The shortfall between exports and imports widened from £8.6bn in the third quarter to £10.4bn, fuelling concerns that UK’s deteriorating trading position will be a drag on GDP growth this year.
Figures from the Office for National Statistics published on Tuesday showed that record aircraft sales and a rise in cars sold abroad were offset by a drop in chemicals exports and the long-term decline in North Sea oil, which has hit the UK’s trade balance since production began to decline at the beginning of the century.Figures from the Office for National Statistics published on Tuesday showed that record aircraft sales and a rise in cars sold abroad were offset by a drop in chemicals exports and the long-term decline in North Sea oil, which has hit the UK’s trade balance since production began to decline at the beginning of the century.
The situation improved slightly in December, after a further slide in the export of goods was accompanied by a bigger fall in imports and a greater reliance on exports by the services sector.The situation improved slightly in December, after a further slide in the export of goods was accompanied by a bigger fall in imports and a greater reliance on exports by the services sector.
The overall trade deficit narrowed from a revised £4bn in November to £2.7bn in December, smaller than the consensus expectation of £3bn.The overall trade deficit narrowed from a revised £4bn in November to £2.7bn in December, smaller than the consensus expectation of £3bn.
Nevertheless, the UK’s goods trade gap with the rest of the world widened by £1.9bn to a record high of £125bn in 2015.Nevertheless, the UK’s goods trade gap with the rest of the world widened by £1.9bn to a record high of £125bn in 2015.
Related: Differing definitions of economic recovery | Letters
Howard Archer, chief UK economist at IHS Global Insight, said: “UK exports have clearly struggled in recent months, as they have been hampered by sterling’s overall strength in 2015, particularly against the euro, and moderate global demand.Howard Archer, chief UK economist at IHS Global Insight, said: “UK exports have clearly struggled in recent months, as they have been hampered by sterling’s overall strength in 2015, particularly against the euro, and moderate global demand.
“This was evident in total exports of goods and services falling 0.8% month on month in December and by 0.8% quarter-on-quarter in the fourth quarter. Exports of traded goods excluding oil did grow 0.5% month on month in December, but they were only flat over the fourth quarter,” he said.“This was evident in total exports of goods and services falling 0.8% month on month in December and by 0.8% quarter-on-quarter in the fourth quarter. Exports of traded goods excluding oil did grow 0.5% month on month in December, but they were only flat over the fourth quarter,” he said.
Britain struggled to improve its export performance last year against the backdrop of a high pound and increasing concerns that the global economy is heading for a severe recession.Britain struggled to improve its export performance last year against the backdrop of a high pound and increasing concerns that the global economy is heading for a severe recession.
Recent declines in the value of sterling are expected to support exports sales, though the deteriorating global situation could mitigate against an improved exchange rate.Recent declines in the value of sterling are expected to support exports sales, though the deteriorating global situation could mitigate against an improved exchange rate.
Paul Hollingsworth, a UK analyst at Capital Economics, said: “The UK is clearly not immune to a weaker external environment. However, we think that concerns about a sharp global slowdown are somewhat overdone – indeed we think global growth will accelerate this year. What’s more, the 5% or so fall in trade-weighted sterling since around mid-November should help exporters perform better in time.Paul Hollingsworth, a UK analyst at Capital Economics, said: “The UK is clearly not immune to a weaker external environment. However, we think that concerns about a sharp global slowdown are somewhat overdone – indeed we think global growth will accelerate this year. What’s more, the 5% or so fall in trade-weighted sterling since around mid-November should help exporters perform better in time.
“Nonetheless, any progress in reducing the trade deficit is likely to be extremely slow in the near term, leaving the recovery reliant on domestic demand.”“Nonetheless, any progress in reducing the trade deficit is likely to be extremely slow in the near term, leaving the recovery reliant on domestic demand.”
Over the last quarter, chemicals exports fell by £900m to £12.1bn while oil exports dropped by 9% to £4.7bn.Over the last quarter, chemicals exports fell by £900m to £12.1bn while oil exports dropped by 9% to £4.7bn.
The ONS said these decreases were partially offset by an increase in the export of aircraft, which rose by 31% to £3.6bn.The ONS said these decreases were partially offset by an increase in the export of aircraft, which rose by 31% to £3.6bn.