UK Analysis: Q3 Trade Gap Widens Sharply; To Hit GDP>

-UK Q3 Trade Gap Stg9.463bn vs Stg6.507bn in Q2

-UK Sept Trade Gap Stg2.754bn vs Stg3.455bn in August

-UK Sept Goods Trade Gap Stg11.253bn vs Stg12.350bn in August 

     By Laurie Laird and Jamie Satchithanantham 

     London (MNI) - The UK trade gap widened dramatically in the third 

quarter of 2017, courtesy of a fall in exports, creating a significant 

drag on gross domestic product. 

     Exports fell 0.2% to Stg152.292 billion in the three months ended 

September, while imports rose 1.6% to Stg161.755 billion, leaving the 

total deficit at Stg9.463 billion in Q3, up from Stg6.507 billion in the 

Q2. 

     That suggests net trade could subtract 0.6 from GDP in the third 

quarter, according to a National Statistics official, although the 

official warned that monthly trade figures are not adjusted for price 

changes and are not directly comparable to data included in the 

calculation of gross domestic product. 

     Net trade provided a boost to the economy in the second three 

months of the year, adding 0.4 percentage points to total growth of 

0.3%. 

     Over the month of September, the total trade gap fell to Stg2.754 

billion, from a revised Stg3.455 billion in August.  

     Total exports jumped by 2.2% to Stg51.581 billion in September, 

while imports increased by 0.7% to Stg54.335 billion. 

     The deficit in goods narrowed to Stg11.253 in September, from a 

revised Stg12.350 billion gap in August. 

     Exports of goods rose by 4.5% to Stg29.511 billion in September, 

lifted by shipments of miscellaneous manufacturers, which includes 

jewellery and works of art. Imports increased by just 0.4% to Stg40.764 

billion.  

     Hopes that the sharp fall in sterling might significantly exports 

in the wake of the Brexit vote have yet to be realised. Over the first 

nine months of 2017, exports of goods have increased by 13.6% compared 

with the same period a year earlier, while imports rose by nearly as 

much, increasing by 10.0%. 

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

Union rose slightly to Stg8.271 billion in September from Stg8.164 

billion in August.   

     The non-EU trade gap narrowed sharply to Stg2.982 billion in 

September, from Stg4.186 billion the previous month, but was over 

stg3.0bn wider in Q3 versus Q2 . 

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

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