MNI BRIEF: UK Jan Trade Gap Balloons On Data Collection Change

The UK trade deficit ballooned in January, although export data were distorted by a change in reporting standards, the Office for National Statistics said Friday. The gap hit GBP16.159 billion in the opening month of the year, the biggest shortfall since records began in 1997, following a GBP2.337 billion deficit in December.

Exports declined by 8.3%, or by GBP4.6 billion after an adjustment in the assumed departure date in shipments to the European Union from five to 15 days. That accounted for between GBP2-3 billion of the plunge in exports, according to ONS officials. Collection of import data also changed in January, with the ONS using figures provided by HMRC, rather than the Intra-Stat Survey, but officials do not believe the adaption caused any great distortion. Imports rose by 16.0%, boosted by incoming shipments of non-monetary gold, according to officials.

The EU goods trade gap expanded to GBP12.849 billion from GBP4.478 billion, while the non-EU gap rose to GBP13.650 billion.