Nov Trade Hits Highest Surplus on Record....>

UK DATA: Nov Trade Hits Highest Surplus on Record

-UK Nov total trade in Stg4.031bn from Stg1.337bn shortfall in Oct

-UK Nov goods deficit Stg5.256bn from Stg10.947bn Oct

-UK Nov total imports -7.8%%, total exports +1.1%

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The UK trade deficit hit its highest surplus since records began in 

1998, although the outturn was distorted by trade in unspecified goods, 

mostly non-monetary gold. Excluding that category, total trade remained 

in surplus, to the tune of Stg700 million, also the largest balance on 

record (a near 2 billion surplus in May has since been largely revised 

away). Imports plunged by 7.8% in December excluding unspecified goods, 

the biggest fall since July 2006. Despite the dramatic improvement in 

the trade position, the sector will contribute positively to GDP only if 

the deficit falls short of Stg1.2 billion in price-adjusted terms in 

December. Net trade added 2.41pp to total growth in Q3. The deficit in 

goods fell to its lowest level since June 2005.