UK Trade Deficit Widens to 1-Year High in June


The trade deficit in the United Kingdom widened sharply by £0.9 billion to £5.1 billion in June 2016 from an upwardly revised £4.2 billion in May. It was the biggest deficit since July last year, as exports increased by 2.4 percent while imports increased at a faster 4 percent to a record high of £48.9 billion.

Between May 2016 and June 2016, total exports (goods and services) increased by £1.0 billion (+2.4 percent) to £43.8 billion; this increase comprised a £1.0 billion (4.0 percent) increase in the exports of goods and a £0.1 billion (0.3 percent) increase in the export of services. Total imports (goods and services) increased by £1.9 billion (4.0 percent) to £48.9 billion over the same period, reflecting a £1.8 billion (5.2 percent) rise in imports of goods.

The deficit on trade in goods was £12.4 billion in June 2016, widening by £0.9 billion from May 2016. This widening reflected an increase in imports of goods; imports of oil increased £0.7 billion and increasing in imports of chemicals, aircraft and material manufactures of £0.4 billion each. Over the same period, exports of goods rose reflecting increases in exports of oil of £0.4 billion and chemicals of £0.2 billion.

Between May 2016 and June 2016, exports of goods to EU countries increased by £0.5 billion (4.7 percent) to £12.0 billion, mainly reflecting an increase in exports of oil (£0.5 billion). Imports of goods from EU countries increased by £0.8 billion to a record high of £20.3 billion in June 2016, as imports of machinery and transport equipment rose £0.4 billion.

Between May 2016 and June 2016, exports of goods to countries outside the EU increased by £0.4 billion. Imports of goods from countries outside the EU increased by £1.0 billion, reflecting a £0.7 billion increase in imports of oil from Norway.

Considering the second quarter of 2016, the total trade deficit (goods and services) widened by £0.4 billion to £12.5 billion from the previous period, mainly due to a slightly larger increase in imports than exports. Total imports rose to a record high of £144.0 billion.

UK Trade Deficit Widens to 1-Year High in June


ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/9/2016 10:01:10 AM