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| Version 2 | Version 3 |
|---|---|
| UK trade deficit widens in December | UK trade deficit widens in December |
| (about 4 hours later) | |
| The UK's trade deficit in goods and services widened in December to its highest level since August 2005, after a jump in imports. | The UK's trade deficit in goods and services widened in December to its highest level since August 2005, after a jump in imports. |
| Imports were lifted by a rise in orders for aircraft, ahead of a change in VAT. | Imports were lifted by a rise in orders for aircraft, ahead of a change in VAT. |
| The deficit - the difference between the UK's exports and imports - grew to £4.831bn from £3.947bn in November, the Office for National Statistics said. | The deficit - the difference between the UK's exports and imports - grew to £4.831bn from £3.947bn in November, the Office for National Statistics said. |
| Separately, the government unveiled new measures to encourage smaller companies to export more. | |
| Business Secretary Vince Cable said the UK had "consumed too much and exported too little" in the last few decades as he outlined the government's strategy in a Trade and Investment White Paper. | |
| Weak recovery | |
| A business group was disappointed by the latest dip in exports, as they are seen as vital to the UK recovery. | |
| The British Chambers of Commerce (BCC) said the figures showed that the UK's trading position was not improving. | The British Chambers of Commerce (BCC) said the figures showed that the UK's trading position was not improving. |
| "Although exports have grown at various points over the past year, the pace of recovery is not strong enough," said David Kern, chief economist at the BCC. | "Although exports have grown at various points over the past year, the pace of recovery is not strong enough," said David Kern, chief economist at the BCC. |
| "A substantial increase in net exports will be a key component in any sustainable UK recovery." | "A substantial increase in net exports will be a key component in any sustainable UK recovery." |
| The BCC has called for more government support for exporters. | |
| Its International Trade Survey of 8,000 UK companies suggested that nearly 70% of companies do not currently export. | |
| The BCC said that many of those businesses were unable or unwilling to consider potential export opportunities, citing reasons such as unsuitable products and services, lack of resources, and needing help to find overseas customers. | |
| Weather effect? | Weather effect? |
| For the whole of 2010, the UK's deficit grew to £46.2bn from £29.7bn in 2009, the ONS said in its latest release. | For the whole of 2010, the UK's deficit grew to £46.2bn from £29.7bn in 2009, the ONS said in its latest release. |
| In December, exports from the UK fell slightly to £37.647bn. | In December, exports from the UK fell slightly to £37.647bn. |
| Imports rose by £868m to reach a new high of £42.478bn. | Imports rose by £868m to reach a new high of £42.478bn. |
| That included a £652m increase in aircraft imports. | That included a £652m increase in aircraft imports. |
| This also contributed to the trade deficit for goods hitting a record high of £9.247bn, compared with £8.460bn in November. | This also contributed to the trade deficit for goods hitting a record high of £9.247bn, compared with £8.460bn in November. |
| The ONS also said that there was some evidence that adverse weather had affected trade volumes, although some of this was compensated for on other days in the month. | The ONS also said that there was some evidence that adverse weather had affected trade volumes, although some of this was compensated for on other days in the month. |
| "The headline data is disappointing, but the impact of the weather really was always going to make it very hard to discern the underlying trend," said David Tinsley from National Australia Bank. | "The headline data is disappointing, but the impact of the weather really was always going to make it very hard to discern the underlying trend," said David Tinsley from National Australia Bank. |
| "So while they're somewhat disappointing I would leave them aside until we get the January figures and can assess whether there has been a bounce back in some of the issues. | "So while they're somewhat disappointing I would leave them aside until we get the January figures and can assess whether there has been a bounce back in some of the issues. |
| "There's also an erratic story going on in terms of beating the VAT hike, in terms of aircraft imports, which are up over half a billion pounds, so that explains part of it as well," he added. | "There's also an erratic story going on in terms of beating the VAT hike, in terms of aircraft imports, which are up over half a billion pounds, so that explains part of it as well," he added. |