The UK’s goods trade deficit widened more than expected in June as exports fell markedly faster than imports, official data showed Thursday.
The goods trade gap increased by £1.9 billion ($2.6 billion) from the previous month to £21 billion ($28.3 billion), according to the Office for National Statistics (ONS).
The figure exceeded market expectations for a deficit of £20.6 billion ($27.8 billion).
Goods exports decreased by £2.2 billion, or 6.3%, month-on-month to £33 billion. Exports to the EU fell 7.4% to £15.9 billion, while shipments to non-EU countries declined 5.4% to £17.1 billion.
The decline in EU exports reflected lower shipments of fuels, chemicals, machinery, and transport equipment.
Exports to non-EU countries were dragged down mainly by weaker car shipments to China and lower sales of mechanical power generators to the United Arab Emirates.
Goods imports slipped by £400 million, or 0.7%, to £54 billion. Imports from the EU edged down 0.3% to £28.4 billion, while those from non-EU countries fell 1% to £25.6 billion.
After removing the effects of inflation, goods imports rose 1.1%, while exports declined 4.7% in June.
In the second quarter, the UK’s overall goods and services trade deficit widened by £300 million from the previous quarter to £8 billion.
The goods deficit increased by £1.2 billion to £60.7 billion, while the services surplus grew by about £900 million to £52.7 billion.
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