UK Trade Deficit Narrowed Due to Growth in Non-EU exports

The UK’s trade deficit fell to 2.7 billion pounds in May on the back of growing exports, compared with £4.1 billion pounds in April, according to the Office for National Statistics.

The seasonally adjusted volume of exports was 6.6 percent higher, while imports rose 1 percent.

The UK’s exports to non-EU countries were unusually higher than exports to the EU, indicating that exporters are adjusting to supressed demand from the euro zone, due to the debt crisis, the British Chambers of Commerce reported.

The goods deficit was smaller in May – 8.4 billion pounds – compared to April – 9.7 billion pounds, while services remained unchanged at a surplus of 5.6 billion pounds. A different report showed that manufacturing output unexpectedly rose by 1.2 percent in May, thanks to an extra working day as a result of a postponed bank holiday.

The Diamond Jubilee and warm weather also helped boost the food and drink sectors, which showed 2.2 percent increase in May, compared to April.

Overall, the economic big picture remains rather negative for Britain, with the seasonally adjusted index of manufacturing falling 1.7 percent in May compared to the same month last year.

Source: BBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.