The UK trade deficit widened by 15pc in February from the previous month as demand for British goods abroad weakened. The global trade deficit grew to STG3.7bn from STG3.2bn, according to figures released today by National Statistics (NS). Total exports of British goods fell by 5.0pc on the month to STG14.8bn, while imports fell by a more modest 1.5pc to STG18.5bn. There was a decline in exports of intermediate, capital goods and consumer goods other than cars, and higher imports of capital goods and semi-manufactured goods, National Statistics said.
The February result was wider than expected, with analysts tipping a median deficit of STG3.4bn. Excluding oil and erratics, the trade deficit in February narrowed to UK4.2bn from a STG3.55bn shortfall the previous month. Including services, the UK trade gap widened to STG2.4bn, from a STG1.7bn gap in January. Britain's Chancellor of the Exchequer, Gordon Brown, delivers his seventh budget statement today and is expected to revise downward forecasts for UK GDP growth. //www.fxcentre.com