May Trade Deficit Narrows; Trade Poised to..>

UK DATA: May Trade Deficit Narrows; Trade Poised to Lift Q2 GDP

- UK May deficit Stg2.324bn vs Stg3.716bn in April

- UK May goods deficit Stg11.524bn vs Stg12.761bn in April

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The UK trade deficit fell sharply in May, with the improvement in the 

trade position flattered by a revision to the April shortfall, 

which increased by just under a bln pounds from the initially-reported 

Stg2.740 billion. The Q1 shortfall was revised higher by a billion 

pounds, but that change was reflected in National Accounts data released 

last month, in which trade subtracted a record-high 2.99pp from GDP 

growth. However, trade is poised to make a positive contribution to Q2 

growth -- the trade gap could balloon to Stg14 billion in June and still

leave the deficit lower than in Q1.