-Howard Archer, an economist at IHS Global Insight
The U.K. key contributor to overall economic growth fell more than initially was expected in April, as imports declined faster than exports, the Office for National Statistics said Friday. The nation's goods trade gap stood at 8.2 billion pounds in April, down from 9.2 billion in the preceding month, outpacing analysts' expectations, which called for a 8.8 billion gap. Data also showed that exports fell 1.4%, while imports declined 3.8%. Shipments to European Union, Britain's biggest trading partner, as a whole tumbled 3%, however, the decline was partially offset by a 0.2% gain in exports to countries outside the bloc.
The recent figures are showing that the economy is gaining pace, but they also underline the risks to the recovery from a neighbouring Eurozone which is in its sixth consecutive quarter of contraction and is still struggling to grow even despite all measures done by the ECB. Earlier this month the BoE kept interest rates and the pace of its bond-buying programme on hold amid signs of economic stabilization.
Also Friday data showed that Britons expect the same rate of inflation over the coming year. Public inflation expectations for the next 12 months stood at 3.6 in May, unchanged from the previous month and still well above the central bank's 2% target level.
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