- Dr. Howard Archer, chief UK+European economist at IHS Global Insight
The UK's trade deficit in goods and services shrank in November as the value of oil imports dropped. The British total trade shortfall came in at 3.2 billion pounds in the reported month, down from 3.5 billion pound trade gap in October, according to the Office for National Statistics. The deficit for the three months to November was 7.7 billion pounds, down 1.0 billion pounds from the previous quarter. In volume terms, exports of goods climbed 0.6% from October. However, that followed a drop of 2.5% in the month before, leaving them up by just 0.6% in terms of quarterly rates of change. Strength in Sterling, particularly versus the Euro, continued to weigh on exports amid sluggish global demand. Imports increased by 2.5% over the same time frame. The Confederation of British Industries that despite exports remaining the weakest spot, manufacturers' export orders had improved in the last month of 2015.
The UK's trade balance remains one of the weakest segments of the economy, with foreign trade in goods posting persistent deficits since 1998. Reducing the trade deficit so that the economy is less reliant on domestic demand is part of the government's policy to rebalance the economy.
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