- Howard Archer, IHS Global Insight economist
The UK's trade deficit shrank in March after widening steeply in the previous month. The trade gap came in at 10.1 billion pounds in the reported month, according to the Office for National Statistics, following an upwardly revised 10.8 billion pounds in February. The deficit in March narrowed as exports rebounded slightly, while imports declined from February, according to the ONS. Exports increased 1.4% to 23.7 billion pounds, with sales to non-EU nations jumping 5.4%. Sales to the EU declined 2.9%, the ONS said. Imports dropped 1% on the month. Meanwhile, total trade deficit widened in the first quarter, pointing to sluggish overseas demand, which dragged down on economic growth in the beginning of the year. The trade gap on goods and services widened to 7.48 billion pounds from 5.97 billion pounds in the fourth quarter of 2014.
A separate report by Halifax showed UK house prices climbed 1.6% last month, with the annual rate of increase rising slightly to 8.5%, pointing to a recovery from a slowdown in late 2014 on the backdrop of low mortgage rates and strong economic growth. Both the monthly and the annual increases were the biggest since January. The average house price has increased to 196,412 pounds. However, Halifax said growth house prices in the three months to April was slower than in the previous three-month period and likely to decline further.
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