–Underlying deficit narrows as car exports rise sharply
–Nov global goods deficit Stg8.736bn vs Stg8.591bn in Oct
–Nov global goods/services deficit Stg4.123bn vs Stg4.038bn in Oct
–Nov global goods deficit ex oil/erratics Stg7.363bn vs Stg8.026bn Oct
–Nov global goods deficit median forecast Stg8.4bn; total Stg3.8bn

LONDON (MNI) — The headline goods trade deficit hit a record high
in November, although there was a substantial narrowing in the
underlying shortfall as exports of cars rose strongly, according to
figures released by National Statistics Wednesday.

The trade in goods gap widened to Stg8.736 billion in November from
Stg8.591 billion in October, above the median forecast of Stg8.4
billion, and the highest goods deficit on record.

The rise in the deficit in November was mainly due to a sharp rise
in oil imports of 39% on the month, against a 12.9% rise in exports,
pushing the oil balance into a deficit of Stg0.66 billion, following a
small surplus in October. National Statistics said that the UK normally
runs a shortfall on the oil account and that November was a return to
this.

While the headline deficit hit a record high, the underlying
deficit, a measure watched by economists to gain a truer picture of
movements in the trade shortfall, narrowed this month.

Excluding oil and erratic items, the goods deficit narrowed in
November to Stg7.363 billion from Stg8.026 billion in October. Imports
were flat on the month while exports rose 3.5% to their highest level
since May 2006.

National Statistics said that exports were led by rising car
exports which rose Stg353 million on the month, with exports to non-EU
countries rising Stg259 million and EU exports up Stg94 million.

The data tally with recent survey evidence which has pointed to
strong exports from manufacturing firms in recent months.

Including services the total trade shortfall widened to Stg4.123
billion in November from Stg4.038 billion in October, above the median
forecast for a Stg3.8 billion deficit.

–London newsroom: 020 7862 7492; email: drobinson@marketnews.com

[TOPICS: M$BDS$,M$B$$$,MT$$$$,MABDS$]