MNI DATA ANALYSIS: July Trade Gap Falls; Q2 Revised Lower>

-UK July Total Trade Gap Stg111m vs Stg942m in June

-UK Q2 Price-Adjusted Total Deficit Stg5.700bn vs Stg7.244 previous

By Laurie Laird and Jamie Satchithanantham 

     London (MNI) - The UK trade gap narrowed significantly in the month 

of July, while the deficit for the second quarter was revised lower, 

leaving net trade poised to exert less of a drag on second quarter of 

2018. 

     The total deficit fell to Stg111 million in the seventh month of 

the year, from Stg942 million in June, compared to the MNI median 

forecast of a Stg2.5 billion shortfall. 

     Total exports rose by 2.0% to Stg54.378 billion in July, while 

imports increased by 0.4% to Stg54.489 billion. 

     Imports of foods and chemical products both declined in the month 

of July, showing no evidence of stockpiling in lead up to Brexit day at 

the end of March next year. 

     Over the second quarter, the price-adjusted deficit was revised to 

Stg5.7 billion, from the originally-reported Stg7.2 billion. That means 

that net trade subtracted 0.6 percentage points from total growth of 

0.4% in the second quarter, down from the 0.8 percentage point drag 

reported last month. 

     However, a National Statistics official cautioned that the 

reduction in the trade deficit could be revised again in later 

iterations of gross domestic product. 

     The trade deficit in goods declined to Stg9.973 billion in July 

from Stg10.679 billion in June. 

-London bureau: 44 (0) 203 865 3812; email: ukeditorial@marketnews.com

[TOPICS: M$B$$$,MABDS$]