Britain's goods trade gap with the rest of the world widened slightly more than expected in June as the oil balance swung into deficit due to summer maintenance work, official data showed today.
The Office for National Statistics said that the goods trade gap rose to £6.4 billion from £6.1 billion in May. Economists had forecast a deficit of £6.2 billion.
Overall, imports rose 2.2 per cent on the month, the biggest increase since July 2008, while exports gained 1.4 per cent in June.
Markets showed little reaction to the data and economists noted the widening of the deficit followed a narrowing in May.
“It's deteriorated a little bit and is a little bit wider than what it was in May, but it improved sharply that month,” said Alan Clarke, economist at BNP Paribas.
The oil balance recorded a deficit of £315 million after a surplus of £100 million in May. The ONS said this was probably due to increased refinery demand when UK production is lower because of summer maintenance on installations.
Most analysts still see the trade gap narrowing in the next few months as weaker sterling over the last year helps demand for British goods.
The goods trade gap with non-EU countries also widened slightly more than expected to £3.6 billion from £3.2 billion in May. Analysts had forecast a deficit of £3.5 billion.
Reuters