UK trade deficit widens in November as exports fall
Wednesday, 11 January 2012 04:41
The trade deficit between Britain and the rest of the world was found to have fallen in November 2011 when compared with the previous month.
According to the Office for National Statistics, there was a seasonally adjusted deficit in goods and services of £2.6 billion in November as opposed to the £1.9 billion in October.
Goods were affected particularly badly, with the deficit increasing by £700 million.
This was more than economic experts feared and was blamed on a decline in exports, with sales of silver and consumer goods performing particularly badly.
Excluding oil and similar items, exports were 1.7 per cent lower and imports were 1.1 per cent higher in November.
This resulted in a total trade gap of £8.64 billion, with difficult conditions in Europe damaging prospects for UK manufacturers.
Commenting on the results, IHS Global Insight's Howard Archer said: "There is little evidence overall of marked improvement, which is disappointing for hopes that improved exports can boost overall growth and help the UK economy to become more balanced."
The expert added that UK exporters are likely to be concerned about the likelihood of GDP contraction in Europe in early 2012 and how this could further affect sales of their products.
However, he pointed out that there was some good news on the inflation front, as import prices declined by 0.2 per cent.
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