Thursday, April 09, 2009
Better news on trade
Posted by David Smith at 09:45 AM
Category: Thoughts and responses

Though Britain's overall trade deficit widened from 3.1 billion to 3.2 billion between January and February, reflecting a smaller surplus on services (down from 4.7 billion to 4.1 billion), there was some evidence in the latest numbers that the pound's weakness is starting to help goods.

The trade deficit in goods narrowed from 7.8 billion to 7.3 billion, as exports rose and imports fell. There was a big narrowing of the good deficit with countries outside the European Union, down from 5.6 billion to 4 billion. More details here.

Meanwhile, 'pipeline' inflation pressues continued to ease, with output price inflation (factory gate inflation) down from 3% in February to 2% in March and input prices in the 12 months to March down 0.4%. More here.