Import surge widens UK trade deficit

first_img KCS-content BRITAIN’S trade deficit exploded in the three months to July to a record £13.2bn, dashing hopes among policymakers and economists that net trade might help to drive economic growth higher. The gulf between imports and exports of goods widened to £8.7bn from £7.5bn in June, the biggest since the series started in January 1998 and confounding economists who had forecast the deficit to remain broadly unchanged.The widening of the deficit was caused by a surge in imports of 2.4 per cent on the month. Import volumes in May to July rose 17.2 per cent year-on-year, the highest growth since 1982. City economists expressed disappointment and frustration that a weaker sterling was not feeding through into better net trade figures. Capital Economics’ Vicky Redwood said: “A boost to net trade from the lower pound was always going to take a while, but this is getting ridiculous.”She added: “The overall trade deficit widened from £3.9bn to £4.9bn, setting a poor starting point for the third quarter as a whole. Things would have to improve dramatically in August and September for the trade deficit in the third quarter overall not to widen from the second quarter average of £4.1bn. At the moment, then, net trade is on course to be a drag on GDP growth in the third quarter.”However, some economists were more upbeat. Andrew Goodwin, senior economic advisor to the Ernst & Young ITEM Club, said: “This data is, in a way, encouraging. Indeed, the widening deficit was accounted for by a strong increase in imports, in particular, intermediate and investment goods.”“This may signal robust activity in the industry sector in the next couple of months,” Goodwin added. With tentative signs that the world economy is faltering, global demand may weaken significantly over the coming months, weighing on exports. The continued slowdown in the Eurozone, Britain’s largest export market, is of particular concern to economists. Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesUndoBetterBe20 Stunning Female AthletesBetterBeUndomoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comUndoTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmUndoDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’DefinitionUndothedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.comUndoinvesting.comCanceled TV Shows Announced: Full Updated Listinvesting.comUndoHero WarsBig Boss of internet games!Hero WarsUndo Import surge widens UK trade deficit whatsapp More From Our Partners Native American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgUK teen died on school trip after teachers allegedly refused her pleasnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.com‘The Love Boat’ captain Gavin MacLeod dies at 90nypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comcenter_img whatsapp Share Show Comments ▼ Tags: NULL Thursday 9 September 2010 8:17 pmlast_img

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