Britain’s £6.48 billion trade gap

The recession may be over according to some estimates, but Britain's trade deficit is still problematic.

Figures today show the UK's trade gap with the rest of the world narrowed less than expected in July.

According to the Office for National Statistics, Britain's global goods trade gap narrowed fractionally to £6.48 billion from £6.52 billion in June. Analysts had predicted a deficit of £6.3 billion.

Jonathan Loynes, chief European economist at Capital Economics, said: "The latest UK trade figures give little indication that the combination of an improving overseas environment and the fall in the exchange rate has yet had much impact on the external sector."

The value of UK exports increased by 5% on the month to £19.19 billion. The total value of imports rose 3.5% to £25.67 billion.

Exports to EU countries rose 6.5% and outside the EU by 3%. Imports from EU countries rose 3% and from non-EU nations 4.5%.