UK trade deficit reduces as exports rise
While trade deficit figures for May were significantly worse than expected there was a welcome rebound in June with the trade deficit dropping to just over £7.4 billion from a high of £8 billion in May. The unexpected increase in exports is directly as a result of the relatively weak UK currency although it has taken some time for this particular factor to impact the trade figures. So what does this mean for the future?
While the total trade deficit, which also includes services, fell from just over £3.8 billion to a 22 month low of £3.26 million, demand in the UK for domestic products and domestic services is set to fall. Everywhere you look today there are negative comments regarding the UK economy, the UK property market, the employment market and the reduction in the public sector budget. Against this background it's difficult to see any short-term improvement in the trade deficit although further weakness in sterling could well see an increase in exports, at least in the short term.
While today's trade deficit data will be a welcome relief to many, there are still underlying fears about the UK economy and the strength of the potential revival.
Share this..
Related stories
IMF concerned about currency wars
As governments around the world looked to control the strength of their currencies and limit any upside, in order to assist economic growth, the IMF is concerned that we could be on the verge of a currency war. The US dollar is under serious pressure at the moment and the Chinese authorities are also uncomfortable with the strength of their currency. So are we on the verge of a currency war? Th...
Read MoreMore Strikes And More On The Way
After this weeks strike by nearly 1 million council workers across the UK it has been announced that staff at the Northern Ireland passport office have voted to strike over pay. This is yet another nail in the coffin of the UK government and has prompted claims that Old Labour is back bigger and stronger than ever!
The Unions have been making serious noises for a number of months n...
OECD claims UK government can't afford election giveaway
The Organisation for Economic Co-operation and Development (OECD) has today issued a stern statement aimed at Alistair Darling suggesting that the UK economy is in such a dire state that he cannot afford to even contemplate a "pre-election giveaway program". The statement comes after the release of October figures for government finances which were the worst on record and show the true demise of t...
Read MoreFlight to safety continues as gold remains in demand
The price of gold has today moved ahead yet further and now stands at $1275 an ounce with some investors looking towards $1350 in the short to medium term. It seems that the flight to safety continues with more and more investors concerned about the outlook for the worldwide economy and more than happy to place their funds in the gold market. The ongoing interest in gold has also helped the sil...
Read MoreGordon Brown finally admits Labour will cut investment in public services
After months of a phoney war with the Conservative party Gordon Brown has finally admitted that he will be forced to cut investment in public services for the first time under his tenure. This is a major U-turn for Gordon Brown, with rumours that Lord Mandelson and Alistair Darling have been pushing him for months, and an embarrassment for the UK government. Hoping to separate the Labour Party and...
Read More