UK trade gap widens
According to the Office for National Statistics (ONS), the UK's goods trade deficit with the rest of the world unexpectedly widened to its biggest since August 2008 in January. Exports saw their sharpest drop in more than three years.
The UK's trade gap in physical goods widened to GBP7.99 billion and was greeted as disappointing, especially since the weak pound might have been expected to boost sales abroad.
The goods trade gap with non-European Union countries was also wider than forecast. That stood at GBP4.8 billion, from GBP3.4 billion in December, after exports to countries outside the EU dropped by 12.5% on the month and imports rose by 1.6%.
The ONS said there was no obvious reason for the deteriorating picture, although some have suggested that the particularly bad weather in January may have disrupted trade flows.
Commentators are quoted as saying that trade is one area where people have been expecting an improvement but it doesn't seem to be happening. In the big picture this is bad news for quarter one GDP.
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