Warhel :: UK trade deficit widens to 1.6bn Euro in June

UK trade deficit widens to 1.6bn Euro in June

Updated on: 08-Aug-2015
The UK trade deficit almost doubled in June to 1.6bn Euro, from 885m Euro the previous month, the Office for National Statistics (ONS) has said.

A deficit of 9.2bn euro on goods was partly offset by a 7.6bn euro surplus on services. UK trade deficit widens to 1.6bn Euro in June

Exports fell slightly, reflecting in part weaker demand in the euro zone.

Despite the sharp monthly increase, the deficit for the second quarter was, at 4.9bn euro, the smallest since the second quarter of 2011 and much lower than the 7.5bn euro deficit in the first quarter.

Concerns about manufacturers being hammered by a stronger sterling and flat euro zone demand may have been premature, although encouraging as this may be, one decent quarter does not necessarily signal that big contributions to [economic] growth from net trade are around the corner, said Lee Hopley, chief economist at manufacturing group EEF.

Indeed, the Bank of England cautionary tone on world trade growth in its Inflation Report suggest there are still downside risks a-plenty.

Total goods exports in June totaled 24.9bn euro, while goods imports rose to 34.1bn euro.

The US was the UKs biggest export market, worth 4.4bn euro in June, followed by Germany, at 2.7bn euro. France, the Netherlands, the Irish Republic and China are the next biggest export markets.

The UK imported goods and services worth 5.34bn euro from Germany in June, more than from any other country. China, the Netherlands, the US and France are the next biggest source of imports.

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