"Hopes that net trade could boost overall economic activity proved to be sadly misplaced in the first half of 2012"
- Howard Archer, an economist at IHS Global Insight
The U.K. trade deficit narrowed more than expected in July, British Office for National Statistics said on Tuesday. Nation's trade gap fell to 7.2 billion pounds from 10.1 billion pounds in the previous month, as exports soared 2.2 per cent, posting biggest increase since records began in 1998.
"Hopes that net trade could boost overall economic activity proved to be sadly misplaced in the first half of 2012," said Howard Archer, an economist at IHS Global Insight in London.
"Prospects for exports still look troublesome given the ongoing serious problems in the euro zone and softer economic activity elsewhere."
The FTSE 100 Index erased 0.02 per cent to 5,792.19. The broader FTSE All-Share Index lost 0.09 per cent to 3,021.72.
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