UK Analysis: Q2 Trade Gap Broadly Flat On Q1>

-UK Q2 Total Trade Gap Stg8.944bn vs Stg8.839bn in Q1

-UK June Total Trade Gap Stg4.564bn vs Stg2.516bn in May

-UK June Goods Trade Gap Stg12.722bn vs Stg11.306bn in May

     By Jamie Satchithanantham and David Robinson 

     London (MNI) - The UK trade gap widened marginally in the second 

quarter, as increases in imports were closely matched by increases in 

exports. 

     The total trade gap widened to Stg8.944 billion in the second three 

months of the year from Stg8.839 billion in the first quarter.  

     Over the month of June, the total trade gap rose to Stg4.564 

billion, from a revised 2.516 billion in May, compared to the MNI median 

forecast of a Stg2.5 billion shortfall. 

     Based on these numbers net trade will not have made a positive or 

negative contribution to Q2 GDP growth but an ONS official stressed to 

take this with caution given the series is accounted for in current 

prices. 

     Over the month of June, total exports fell by 0.7% to Stg49.388 

billion, while imports increased by 3.3% to Stg53.952 billion. 

     The deficit in goods widened to Stg12.722 in June, from a revised 

Stg11.306 billion gap in May, compared to the MNI median forecast of 

Stg11.0 billion. 

     Exports of goods fell by 2.8% to Stg27.481 billion in June, while 

imports rose by 1.6% to Stg40.203 billion. 

     Hopes that the sharp fall in sterling might boost exports in the 

wake of the Brexit vote have yet to be realised. According to the ONS 

official, over the first six months of 2017, exports of goods have 

increased by 12.2% compared with the same period a year earlier, while 

imports rose by 11.6%. Though again, take note that these are in current 

price terms.  

     The trade gap in goods with the 27 other nations of the European 

Union fell to Stg8.251 billion in June from Stg7.813 billion in May.  

Exports to EU countries increased by 2.7% to Stg14.036 billion, while 

imports rose by 3.7% to Stg22.287 billion. 

     The non-EU trade gap widened to Stg4.471 billion in June, from 

Stg3.493 billion the previous month. 

     -London bureau: 44 (0) 203 865 3812; email: 

ukeditorial@marketnews.com 

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