UK Trade Deficit Widens More than Expected


UK’s trade gap on goods and services increased to £2.42 billion in May of 2014, from a revised £2.05 billion in April. It is the highest shortfall in four months, due to a surge in imports of aircrafts.

Between April and May, total exports (including goods and services) increased marginally by 0.47 percent to £40.93 billion. Total imports rose 1.3 percent to £43.35 billion. 

There was a deficit of £9.2 billion on goods, partly offset by an estimated surplus of £6.8 billion on services. Exports of goods increased by 0.6 percent between April and May 2014 to £24.1 billion. The increase reflects a £0.2 billion rise in exports of semi-manufactured goods, specifically material manufactures which rose £0.1 billion from the previous month.

Imports of goods for the same period increased by 1.7 percent to £33.3 billion, reflecting a rise in imports of finished manufactured goods of £0.4 billion. Within finished manufactures, imports of aircraft rose £0.4 billion.

In May 2014, exports of goods to the European Union decreased by less than £0.1 billion to £12.2 billion; falls in the export of manufactured goods were almost entirely offset by a rise in exports of oil. Imports of goods from the EU increased by £0.3 billion to £17.4 billion. 

Exports of goods to countries outside of the EU increased by £0.2 billion to £11.9 billion. In contrast with trade with the EU, exports of manufactured goods rose from the previous month and were partially offset by a fall in exports of oil. Imports from countries outside of the EU increased by £0.3 billion to £15.9 billion, reflecting an increase in imports of semi-manufactured goods. 

UK Trade Deficit Widens More than Expected


ONS | Joana Taborda | joana.taborda@tradingeconomics.com
7/10/2014 9:49:41 AM