UK trade balance improves less than forecast in July

Britain's trade deficit narrowed slightly less than expected in July, official figures revealed on Friday. According to the UK Office for National Statistics, the country's total trade gap shrank to 4.5 billion pounds in July, compared to the preceding month's upwardly revised gap of 5.6 billion pounds, whereas market analysts expected Britain's trade deficit to narrow to 4.1 billion pounds in the reported month. Exports of goods and services increased 2% to 43.8 billion pounds, while imports dropped 0.5% to 48.3 billion pounds in July. In the meantime, the UK's visible trade deficit shrank to 11.8 billion pounds in the seventh month of the year, following June's upwardly revised gap of 12.9 billion pounds, while economic desks penciled in a fall to 11.7 billion pounds. Although the British Pound dropped markedly following the country's decision to leave the European Union, the ONS stated in its report that it was far too early to assess the Brexit impact on exports that were projected to grow sharply amid the weaker Sterling. Back in July, the British Pound was 15% lower against other major currencies, compared with the same period last year. The narrowing of Britain's trade deficit offered some hope that the economy will continue to expand in the Q3 of 2016, despite earlier recession fears.