Record exports outside the EU helped to provide a sharp reduction in the UK’s trade deficit. The gap between imports and exports was the narrowest since the beginning of 2011, shrinking to £7.15 billion in July from £10.07 billion in June. Some economists had predicted a £9 billion gap.
Exports of goods surged 9.3% to £25.8 billion will imports shrunk by 2.1%. Oil exports and a decline in oil imports as well as more days worked were contributing factors. Exports to the Eurozone fell to their lowest ever recorded and exports to the rest of the World hit a record high.
This could well be a blip, but with the Eurozone taking a positive step last week in the German courts and better total employment figures and a reduction in unemployment, all be it small may point to a slowly improving economy.