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Comment: ONS UK Trade Statistics
09 March 2010
Comment from Iain MacDonald, head of trade product, Barclays and the British Chambers of Commerce following the release of today's ONS UK Trade Statistics.
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Iain MacDonald head of trade product Barclays
British Chambers of Commerce
UK Trade Statistics
The UK's seasonally adjusted deficit on trade in goods and services was £3.8 billion in January, compared with the deficit of £2.6 billion in December.
Excluding oil and erratic items, the seasonally adjusted volume of exports was 6 per cent lower and the volume of imports was 1.2 per cent lower in January, compared with December
“The widening trade gap reported in today’s figures will be cause for further concern over the UK’s ability to fully recover in the short term. Sluggish growth and fiscal instability in markets which have traditionally been UK exporting destinations will have contributed to the imbalance in trade.
“Recently, we have been noticing mounting interest from exporters exploring opportunities in markets less affected by the recession, particularly as UK manufacturing gathers pace.
“Though the mid-to-long-term effects may still be too early to tell, the recent weakening of sterling against the euro could bolster exports in the months to come and provide some respite for companies selling abroad.
“However, caution will still need to be exercised as both importers and exporters aim to strike the right balance in their working capital levels in order to seize upon potential growth opportunities throughout the rest of the year.”