© Dukascopy
|
"[Weaker than expected trade balance] heightens concern over fourth-quarter growth prospects"
- Howard Archer, economist at IHS Global Insight
U.K. trade balance widened to -ВЈ9.8 billion in September from -ВЈ8.6 billion in August, as imports surged while exports barely grew, said the Office for National Statistics on Wednesday. Economists expected trade balance to narrow to -ВЈ8.0 billion.
"This increases the risk that third-quarter GDP growth of 0.5% quarter-on-quarter could be revised down and heightens concern over fourth quarter growth prospects," said Howard Archer, economist at IHS Global Insight.
"The downturn in the survey measures of export orders point to further falls in exports ahead. With the Eurozone problems no closer to being resolved, we continue to doubt that the UK's external sector will prevent the economy from sliding back into recession," said Vicky Redwood, chief UK economist at Capital Economics.