UK trade balance narrows in September

The UK trade deficit narrowed in September, figures released on Friday showed.

According to the Office for National Statistics (ONS), the trade balance deficit declined from £1.6bn in August in £1.4bn, driven by a narrowing in the deficit in the trade in goods, which shrank from £10.8bn to £9.4bn.

Exports of goods increased by £0.6bn to £24bn in September, while imports of goods fell by £0.9bn to £33.3bn over the same period, ONS added.

However, despite the narrowing of the deficit in September, the overall trade deficit widened by £5.1bn to £8.5bn in the quarter to the end of September compared with the previous three months.

"The trade picture is fundamentally poor and is likely to get worse as the strong pound incentivises overseas customers to switch to cheaper alternatives,” said analysts at Pantheon Macro UK.