Non-EC trade gap widens but long-term trend is better
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BRITAIN'S visible trade deficit with countries outside the European Community widened dramatically in September, exceeding pounds 1bn for the first time in seven months, writes Robert Chote.
The deterioration reflected increased imports and a fall in exports, but the Treasury blamed a large part of the widening on erratic items. The trade gap increased from pounds 729m in August to pounds 1.09bn in September, according to the Central Statistical Office. The manufacturing trade deficit rose to a nine- month high of pounds 665m.
The figures - which encompass about 40 per cent of Britain's total trade - caused little market reaction. They were in line with recent figures and surveys showing domestic spending continuing to recover while exports are suffering.
The CSO said the trade gap was now on an increasing trend, although it cautioned that this was largely the result of September's erratic figure and that the trend was likely to flatten out in coming months.
Excluding oil and erratic items - ships, aircraft, precious stones and silver - the picture was less bleak. Exports rose by pounds 28m on the month to pounds 4.19bn while imports rose by pounds 142m to pounds 4.852bn. The pounds 662m underlying trade gap was about 20 per cent higher than August's but a little lower than in the previous month. The underlying non-EC trade gap is continuing to shrink on a trend basis, but at an increasingly slow rate.
'Even on an underlying basis, these figures suggest that there is some life in imports and that the domestic economy is not completely moribund,' Kevin Gardiner of Warburg Securities said.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments