UK Trade Deficit Narrows to 7-Month Low


British trade gap decreased to £ 2.04 billion in October of 2014 from a revised £ 2.8 billion in the previous month. It is the lowest shortfall since March due to a fall in fuel imports and higher silver sales.

Total exports of goods and services amounted to £41.99 billion in October while imports reached £44.01 billion. The deficit on trade in goods was £9.6 billion in October 2014, narrowing by £0.9 billion from September.

Exports increased by £0.2 billion to £24.3 billion in October. The largest increase was attributed to exports of erratic items, particularly silver exports, which rose from £0.1 billion in September 2014 to £0.3 billion in October; anecdotal evidence suggests that, for this specific commodity, India was the UK’s trading partner. Further increases of roughly £0.1 billion were seen in unspecified goods and miscellaneous manufactures. These increases were partially offset by falls in exports in machinery and transport equipment and chemicals.

Imports fell by £0.7 billion in October 2014. The decrease mainly reflects a £0.9 billion fall in imports of fuels, specifically oil imports from countries outside the EU where the level of trade returned to a more typical level following September’s high. Imports of miscellaneous manufactures also returned to normal levels, falling by £0.3 billion from September. These decreases were partially offset by a £0.5 billion increase in imports of machinery and transport equipment, specifically aircraft which rose by £0.2 billion.

In October 2014, exports to countries within the EU increased by £0.1 billion, primarily due to exports of fuels (up £0.3 billion). In the same period, imports from countries within the EU fell by £0.3 billion.

Outside the EU, exports rose by £0.1 billion. Increases in exports of manufactured goods were almost entirely offset by falls in fuel exports. Imports to countries outside the EU fell more substantially in October, at £0.4 billion. This reflects fuel imports (specifically oil) falling by £0.8 billion and returning to more typical levels following the notable rise in September. 

UK Trade Deficit Narrows to 7-Month Low


ONS | Joana Taborda | joana.taborda@tradingeconomics.com
12/10/2014 9:51:23 AM