UK Trade Deficit Narrows in February

The UK’s goods trade deficit with the rest of the world narrowed in February by more than expected, helped by a fall in imports, official data has shown.

The Office for National Statistics (ONS) said the trade deficit shrank to £9.1bn from £9.4bn in January.

Economists had expected a deficit of £9.2bn.

Imports fell 2.2% to £32.6bn in February, helping to offset a 1.6% fall in exports to £23.5bn – the lowest level of exports since November 2010.

The UK trade deficit is the measure of the difference between the value of goods the country exports compared with the value of the goods it imports.

The ONS said imports of aircraft and aircraft parts fell 46.3% in February, contributing to three quarters of the total fall in imports in the month.

Imports were also at their lowest level since April 2011.

The ONS said in the three months to the end of February, the goods trade deficit narrowed by £3bn to £26.2bn representing a fall in exports of 0.1% while imports were lower by 3.5%.

The UK’s goods trade deficit with non-EU countries narrowed sharply to £2.9bn n February from £3.9bn January, against forecasts for a gap of £3.4bn.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza