EconoMonitor

Better News on UK Trade

Just when it was needed, news of a better performance on Britain’s overseas trade, with the deficit narrowing to £1.9 billion in August, from £2.3 billion in July and £3.6 billion in August 2010. It may be premature to talk of a rebalancing spurt but it is welcome.

This is the ONS’s summary: “The UK’s deficit on seasonally adjusted trade in goods and services was £1.9 billion in August, compared with a deficit of £2.3 billion in July. The deficit on trade in goods was £7.8 billion, compared with a deficit of £8.2 billion in July. The surplus on trade in services was estimated at £5.9 billion, unchanged compared with July. The volume of seasonally adjusted exports of goods was 1.3 per cent higher, and the volume of imports was 0.3 per cent higher than in July. Export prices of goods fell by 1.5 per cent and import prices fell by 0.5 per cent compared with July.” The release is here.

This post originally appeared on David Smith’s Economics UK and is reproduced here with permission.

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