UK foreign trade deficit widens unexpectedly in June
(ShareCast News) - Britain's trade deficit with the rest of the world increased in June on the back of higher volumes of imported goods and services.
The total trade deficit worsened by £2.0bn to -£4.6bn, according to the Office of National Statistics.
Economists had penciled-in a shortfall of -£2.4bn.
On the other hand, figures for the total trade deficit in April and May were revised lower by £0.3bn and £0.6bn, with higher exports and lower imports accounting for each, respectively.
The second quarter deficit on trade in goods and services widened by £0.1bn to £8.9bn in comparison to the first three months of the year, ONS said.
Yet removing the effect of oil, prices for goods exports fell by 0.4% on the quarter - the first negative quarter since quarter four of 2015 - while those for imports rose by 0.1%.
In terms of year-on-year rates of change, export and import volumes of goods grew by 5.0% and 4.8%, respectively, during the second quarter.
Increased imports of goods, despite a considerable weakening in sterling were attributed by ONS to the UK's increasing integration into global supply chains.
Meanwhile, export and import prices rose by 8.2% and 7.8% on the year with Sterling depreciating by 8.7% over the same time span.
Quarter-on-quarter, exports of goods to countries from outside the European Union declined by 1.4%, acting as a partial offset to a 2.0% rise in sales to EU nations.
That was mainly the result of a fall in exports of machinery and transport equipment (cars, aircraft, electrical machinery and mechanical machinery) and oil.