–May global goods deficit Stg8.062bn vs Stg7.411bn in Apr
–May global goods/services deficit Stg3.817bn vs Stg3.502bn in Apr
–May global goods deficit ex oil/erratics Stg7.409bn vs Stg6.567bn Apr
–May global goods deficit median forecast Stg7.9bn; total Stg3bn
LONDON (MNI) — The UK’s goods trade deficit with the world widened
in May as export growth stalled, according to figures released by
National Statistics Friday.
The goods trade deficit widened to Stg8.062 billion in May from
Stg7.411 billion in April, slightly above the median forecast of Stg7.9
billion and the highest since January this year.
The value of exports rose just 0.2% on the month in May while
imports rose 2.4%. In volume terms imports were up 2.7% while exports
were flat.
With export growth stalling on the month some may see this as the
impact of some slowdown in the global economy. The trade data, however,
are very erratic month-to-month and it is too early to make a concrete
assessment from this set of figures.
Excluding both oil and erratic items the goods deficit rose to
Stg7.409 billion from Stg6.567 billion.
The trade shortfall with non-EU countries rose to Stg4.487 billion
in May from Stg4.003 billion in April. The deficit with EU countries
also widened to Stg3.575 billion from Stg3.408 billion.
While the latest figures show a deterioration in the trade deficit,
the Bank of England expects to see the shortfall narrow over the course
of the year with the depreciation of Sterling helping to boost exports.
“What we will see in due course, is an effect on both the share of
exports in world trade and also on imports from the substantial
depreciation of sterling, which is down about a quarter from its
pre-crisis levels,” Bank of England Deputy Governor Charles Bean said
earlier this year.
Including services, the total trade deficit widened to Stg3.817
billion from Stg3.502 billion, the highest since July 2008.
–London newsroom: 020 7862 7492; email: drobinson@marketnews.com
[TOPICS: M$BDS$,M$B$$$,MT$$$$,MABDS$]
