11 August 2003, 12:37  UK trade deficit widens in June

LONDON, Aug 11 - Britain's global trade deficit in goods unexpectedly widened in June to its highest level since last November as exports to non-European Union countries fell sharply, official figures showed on Monday. The Office for National Statistics said that the global goods deficit widened to 4.5 billion pounds from 4.1 billion pounds in May and versus analysts' forecasts of 3.8 billion. An official statistician cautioned, however, that ongoing computer problems meant that the figures could be subject to a much greater than usual degree of revision as there were measurement problems with non-EU exports.
He said that his "instinct" was that non-EU exports would be revised higher, thus lowering the trade gap. The non-EU deficit came in at 2.7 billion pounds in June from 2.26 billion in May, also much wider than forecast. Exports to non-EU countries were down 13.1 percent on the month right across the boared with the U.S. accounting for about a quarter of the drop. Separately, the ONS released figures on producer prices. These showed non-seasonally adjusted output prices rose 0.2 percent in July versus analysts' expectations of a 0.1 percent rise. Adjusted input prices rose 1.8 percent on the month, the biggest jump since December. The ONS said a jump in crude oil prices was partially offset by a fall in imported chemical prices.//

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