The deficit on trade for goods and services in the UK is estimated to have been £4.5 billion in July this year, narrowing by £1.1 billion from June 2016. Exports, meanwhile, rose by #0.8 billion and imports fell by £0.3 billion.
Data from the Office for National Statistics now shows that the deficit on trade in goods reached #11.8 billion in July, falling by £1.2 billion from the previous month, reflecting the hike in exports and the drop in imports. For the three months to April and the three months to July, the total trade deficit for goods and services grew by £5.1 billion to reach £14 billion.
After the EU referendum vote result on June 24th, the value of the pound dipped sharply against numerous currencies at the end of June and moving into July. In July, the sterling Exchange Rate Index was 6.6 per cent lower when compared to the average level in June and 15 per cent below the level seen in July last year.
Experts generally agree that this recent depreciation should actually help boost export and manufacturing competitiveness, and could even result in higher long run volume growth. Last year, exports to the EU of goods and services made up 44 per cent of all exports. Between June and July of this year, exports to the EU rose by £1 billion to reach £12.5 per cent, an increase of 9.1 per cent. This was put down to a rise in exports to the Netherlands, Gemran, Belgium, Luxembourg, Republic of Ireland, Spain and France.
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