BRITAIN'S deficit on trade in goods with the rest of the world narrowed to £985 million sterling in May from £1.36 billion in April, official figures show.

Exports rose 2.5 per cent to £14 billion while imports fell 0.5 per cent to £15 billion, said the Office for National Statistics.

Within the global figures the trade shortfall with countries outside the European Union rose to £814 million from £799 million but it was more than offset by a narrowing of the European Union deficit to £171 million from £564 million.