The UK recorded its biggest ever monthly trade deficit in August as a result of expected insurance claims in the wake of Hurricane Katrina which devastated New Orleans, official figures showed today. The office of National Statistics reported that a 1.6 bln stg services surplus in July slipped to only 0.3 bln in August, due to a 1.4 bln stg downward adjustment to account for the estimated payment of claims by insurance giant Lloyd's of London, arising from Hurricane Katrina. And, with the global trade in goods deficit hitting a record of 5.6 bln stg in August, from July's 5.5 bln revised figure, the total goods and services deficit stood at 5.3 bln stg against 3.9 bln in July, which itself had been the previous high. Analysts had predicted that the August goods deficit would improve to 5.0 bln stg from the initial 5.1 bln estimate in July but a deterioration in the balance with non-EU countries put paid to that. The non-EU deficit in August stood at 3.2 bln stg against 2.6 bln in July and expectations of a 2.5 bln trade gap. However the deficit with the EU improved to 2.5 bln stg from 2.9 bln in the previous month. A more detailed look at the trade in goods data shows that the UK's oil account slipped to a 0.4 bln stg deficit -- the first deficit since November 2004. In July the surplus was less than 0.1 bln stg. And though there were higher exports of cars and chemicals, the statistics office noted that there were even higher imports of consumer goods other than cars, and aircraft. Total exports increased by 0.6 bln to 17.8 bln in August, while imports rose 0.7 bln stg to 23.4 bln. Over the three months ending August, the statistics office said the total deficit widened to 11.6 bln stg from 11.1 bln in the previous three month period, while the goods deficit improved to 15.3 bln from 15.3 bln.