The UK global trade in goods deficit in June narrowed after figures for the month were distorted by adjustments to take account of VAT fraud. The office for National Statistics revealed that the UK global trade in goods deficit stood at 4.277 bln stg in June, narrower than the 4.981 gap in May and the 4.9 bln stg deficit predicted. Geographically, the statistics office said the deficit with the EU was wider at 2.837 bln stg from 2.698 bln stg in May, while the non-EU shortfall was 1.44 bln stg -- far narrower from 2.283 the previous month and the 2.4 bln stg shortfall predicted. The latest figure is the smallest non-EU deficit since April 2003. However, an NS spokesperson said the improved figures largely reflect adjustments made to take account of VAT fraud. The extent of the fraud is not yet clear and that statisticians have had to make adjustments which may have to be revised later on, possibly in September. "We are not sure if the adjustment is large enough," the spokesperson said. The impact of the adjustment was to narrow the gap in trade with non-EU countries but to widen the shortfall in trade in EU countries. In June, the statistics office said total exports of goods were 18.216 bln stg, higher than the 16.912 bln stg in May, while total imports of goods rose to 22.493 bln stg from 21.893 bln stg. The UK trade in services surplus improved to 1.797 bln stg in June from 1.490 bln stg the previous month. The overall deficit, including services, improved to 2.48 bln stg in June from 3.491 bln in May. In the three months ending June, the UK's total trade deficit improved to 9.664 bln stg from 10.354 bln in the previous three months. The statistics office said the latest estimate of the trend suggests that the UK trade deficit is fairly flat.