UK import surge leads to widening trade gap

Imports and Exports | | MIC Customs Solutions |

The UK's trade gap widened during November 2016 following a recent surge in imports.

The UK saw a significant increase in the size of its trade deficit during November 2016, official data has shown.

Figures from the Office for National Statistics have indicated that although exports rose by 1.5 per cent during the month, imports jumped by an even more significant 6.9 per cent, with core export prices rising faster than core import prices.

This brought the country's total trade deficit to £4.17 billion (€4.8 billion) for the month, up from £1.57 billion in November 2015. The figure was considerably higher than the £3.5 billion consensus estimate given by analysts.

The British Chambers of Commerce described the trade deficit data as disappointing, saying it provided little evidence that the recent drop in the value of the pound is helping the UK's overall trade balance.

Suren Thiru, head of economics at the British Chambers of Commerce, said: "In order to achieve a meaningful improvement in our export performance, the government must do more to provide businesses with direct support to access new markets."