U.K. trade deficit narrowed in March

British trade deficit narrowed slightly in March, as exports to countries outside the EU rose. The Office for National Statistics said Friday the goods trade deficit shrank to £9.06bn from £9.17bn in February, in line with analysts' expectations. The trade deficit with non-EU countries also narrowed to £3.47bn, compared with £4.21bn a month earlier, beating forecasts for a bigger gap of £4.1bn. The report also showed that shipments from the country jumped 5% in March from February; however, fell 1.2% in the first three months of 2013 compared with the previous quarter. It is widely expected that export from the country will increase even further, boosted by the depreciation in the domestic currency. In March, the Pound dropped to a 20-month low versus a trade-weighted basket of currencies.

Markit economist Chris Williamson said: "Official data and surveys paint an encouraging picture of the UK gaining market share in overseas markets, suggesting the economy is showing signs of rebalancing away from domestic consumption to export-led growth."

"There is a gradual improvement in the economy and the recovery is starting to stand on more solid ground," said Michael Izza, chief executive of ICAEW.