The Office for National Statistics (ONS) released its Statistical bulletin: UK Trade, September 2015 on Friday last week, which showed that the UK’s deficit on trade in goods and services was estimated to have been GBP1.4bn in September this year, a decrease of GBP1.6bn compared to the previous month.
According to the ONS, UK Trade seasonally adjusted report, which records import and export activity and is a main contributor to the overall economic growth of the UK, the contraction in the UK deficit on trade in goods and services is attributable to trade in goods, where the deficit fell to to GBP9.4bn in September 2015, down from GBP10.8bn in August 2015.
During September this year, exports of goods increased by GBP0.6bn to GBP24.0bn, which was said to be as a result of a GBP0.6bn increase in chemicals. Imports of goods fell by GBP0.9bn to GBP33.3 billion in September, which was attributed to a decrease in unspecified goods of GBP1.0bn.
Despite the deficit narrowing in September 2015, the UK’s deficit on trade in goods and services was estimated to have been GBP8.5bn in the third quarter from July to September 2015, widening by GBP5.1bn when compared with the second quarter from April to June 2015.
Between the second and third quarters this year, the trade in goods deficit widened by GBP5.9bn to GBP32.2bn, which was attributed to export figures dropping by GBP6.0bn to GBP70.1bn. Exports of oil fell by GBP1.3bn, chemical exports were down by GBP1.1bn and finished manufacture exports decreased by GBP1.7 bn. Imports decreased by GBP0.1bn to GBP102.3bn over the same period.
ONS figures also showed that the trade in services surplus widened by GBP0.8bn to GBP23.6bn, as imports fell 2.4%, between the second and third quarters this year.