THE UK's trade gap in goods remained at a record level in August, as the cheaper pound failed to boost exports, another gloomy economic update revealed yesterday.
The difference between the UK's exports and imports was £8.2 billion in August, the Office for National Statistics said. It was worse than the £7.6bn expected by analysts, and the largest deficit in the series, which dates back to 1697.
Total UK g
oods exports were £21.3bn in August, down 4.5 per cent from the £22.3bn of July. Exports to non-EU countries fell to a two-year low of £8.95bn.
The overall trade gap, including the contribution from services – Britain's main economic driver – narrowed slightly to £4.7bn in August, from £4.8bn the previous month.
Economists said the goods figures were disappointing as they showed UK exporters had yet to benefit from the weaker pound during recent months.
Global Insight economist Howard Archer said: "The disappointing August trade data raises doubts as to whether trade contributed positively to UK gross domestic product in the third quarter, and reinforces fears that the economy contracted."
In another blow, July's trade deficit figure was revised upward from £7.7bn to £8.2bn.
Paul Dales from Capital Economics said the data supported evidence that the UK was in a recession. He said: "Looking ahead, exporters are going to struggle against the background of a rapidly weakening world economy. Overall these figures suggest that the weakening in overseas activity is deepening the downturn in the UK economy."
The full article contains 264 words and appears in The Scotsman newspaper.
