UK reports record trade deficit in August

Imports and Exports | | MIC Customs Solutions |

The UK experienced a record high trade deficit in August as recent tough trading conditions persisted for British businesses.

The UK has reported a record trade in goods deficit for August 2017 following a continuation of the country's recent slumping international trade performance.

Data from the Office for National Statistics showed that the UK exported £28.1 billion (€31.25 billion) of goods during the month, while imports came to £42.4 billion, leaving a deficit of £14.2 billion.

The fall in exports and sharp rise in imports has confounded hopes that British businesses would be able to expand their international market share due to the depreciation of the pound since the June 2016 Brexit referendum.

Suren Thiru, head of economics at the British Chambers of Commerce, said: "The latest trade data is further evidence that the decline in sterling's value over the past year is doing little to boost the UK's overall trade position."

It was noted that many firms have faced higher input costs due to the weakening currency, particularly those with global supply chains, while companies that rely on overseas suppliers for production equipment have also found it harder to invest in growth.