UK's trading position worsens in autumn

In the third quarter of 2014, Britain’s trading position with the rest of world deteriorated with the UK’s current account deficit widening to £27.0 billion from £24.3 billion in the second quarter.

The trade in services surplus was £22.9 billion in the third quarter, an increase of £2.0 billion on the second quarter. Exports at £52.5 billion were £1.5 billion higher than second quarter, while imports decreased by £0.5 billion to £29.6 billion.

The trade in goods deficit grew by £1.8 billion to £31.9 billion in the third quarter from £30.1 billion in the second quarter.

Imports of goods rose by £0.6 billion, primarily due to higher imports of oil and food, beverages and tobacco.

Exports of goods decreased by £1.2 billion in the third quarter on the back of lower exports of finished manufactured goods, which were down by £0.4 billion.

A deficit of £28.5 billion was recorded with the EU in the third quarter of 2014, compared with a deficit of £27.9 billion in the previous quarter. This increase was due to a widening in the deficits on total trade.

The current account with non-EU countries showed a surplus of £1.5 billion in the third quarter, compared with a surplus of £3.6 billion in the second quarter.

www.ons.gov.uk/ons/dcp171778_390063.pdf