UK Trade Deficit Narrows to £2.8BN in March

The UK trade deficit narrowed to £2.8bn in March from £3.3bn in February, figures from the Office for National Statistics (ONS) show.

The country’s £10.1bn deficit in goods was bigger than expected, but was partially offset by a £7.3bn surplus in services, the ONS said.

Goods exports were 1.4% higher than in February, while imports were down 1%.

For the three months to the end of March, the deficit was £7.5bn, £1.5bn more than in the previous quarter.

The value of the pound has increased 10% against the euro since the beginning of the year.

This held back the UK’s exports in the first three months of the year, which were down £2.7bn on the previous quarter.

“The steady appreciation of sterling on a trade-weighted basis since the beginning of the year may have played a role in widening Q1’s deficit,” said Martin Beck, senior economic advisor to the EY Item Club.

via BBC

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 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