UK Trade Deficit Narrows in June



The total UK trade deficit narrowed by GBP 1.28 billion to GBP 1.86 billion in June of 2018 from an upwardly revised GBP 3.14 billion in the previous month. Exports increased 2.7 percent to GBP 52.41 billion and imports rose 0.2 percent to GBP 54.27 billion.

Exports of goods and services from the UK jumped 2.7 percent to GBP 52.41 billion in June from GBP 51.04 billion in the previous month, mainly due to higher sales of goods (4.3 percent), namely material manufacturers (7.9 percent), crude materials (5.4 percent), machinery & transport equipment (4.6 percent) and chemicals (3.8 percent). Also, exports of services rose 0.8 percent.

Among major trading partners, exports of goods to the EU went up 1.7 percent, sales increased mainly to Netherlands (10.4 percent), Belgium (7.5 percent) and France (0.9 percent); while there was a decrease in sales to Irish Republic (-3.7 percent), Germany (-1.3 percent) and Italy (-10.4 percent). Also, sales to non-EU countries edged up 6.8 percent, namely to the US (4.8 percent), Canada (2.7 percent) and Japan (27.2 percent). Exports were lower for China (-4.6 percent) and Norway (-8.6 percent).

Imports advanced 0.2 percent to GBP 54.27 billion in June from GBP 54.18 billion in the previous month. The increase was driven by a 0.3 percent in sevices and by 0.1 percent in purchases of goods, mostly machinery & transport equipment (5.8 percent), crude materials (4.9 percent), material manufactures (1.4 percent), miscellaneous manufactures (1.4 percent) and beverage & tobacco (1.1 percent). 

Among trading partners, imports of goods from the EU dropped 1.0 percent, mainly from Belgium (-14.1 percent), Italy (-2.9 percent), Ireland (-0.7 percent) and Spain (-0.4 percent). By contrast, higher purchases were recorded from the Netherlands (3.3 percent), Germany (2.7 percent) and France (2.4 percent). On the other hand, purchases from non-EU countries increased 1.6 percent, as imports rose the most from China (1.4 percent) and the US (0.9 percent); while those from India (-17.8 percent) and Norway (-0.1 percent) declined.

In the three months to June of 2018, the trade deficit widened GBP 4.7 billion to GBP 8.6 billion. This was due to a GBP 5.5 billion widening of the trade in goods deficit, resulting from a combination of falling goods exports (GBP 3.1 billion) and rising goods imports (GBP 2.4 billion). Meantime, services imports narrowed by GBP 0.7 and exports rose by GBP 0.1 billion, resulting in an increased of GDP 0.7 billion in the trade in services surplus .

UK Trade Deficit Narrows in June


ONS | Stefanie Moya | stefanie.moya@tradingeconomics.com
8/10/2018 9:51:07 AM