Friday, September 06, 2013
Trade disappoints
Posted by David Smith at 11:00 AM
Category: Thoughts and responses

Britain's trade lurched sharply into wider deficit in July, in a way that suggests some erratic factors came into play. The overall trade deficit widened from 1.3 billion in June to 3.1 billion in July, including a 9.9 billion deficit in goods.

According to the ONS: "In July 2013, exports of goods to countries outside of the European Union (EU) decreased by 2.2 billion to 11.8 billion. Exports to countries within the EU increased by 0.2 billion over the same period to 13.0 billion."

This suggests the slowdown in emerging economies has hit exports just as exports to the EU are beginning to pick up. A drop in aircraft exports, often erratic, contributed to a 7.6% drop in exports on the month. More here.

Industrial production was also a touch disappointing, with overall production flat in July and manufacturing output up by a modest 0.2%. However, both showed 0.9% rises in the latest three months compared with the previous three months. Industrial production was pegged back in July by weak North Sea oil output and a weather-related 2.2% drop in electricity and gas output. More here.