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10th November 2011

Trade deficit hits record high

The UK's trade deficit was wider than ever in September, official data has shown.

The difference in value between the amount of goods imported and exported reached £9.8 billion by the end of September. In August the deficit was recorded as £8.6 billion.

For goods and services alone, the export-import gap widened to £3.9 billion, the largest figure for 11 months.

The Office for National Statistics published the figures as separate export data showed the volume of goods produced for foreign markets shrunk by 1.6%. However, this measurement does not include exports of oil.

Imports to the UK increased by 1.6% overall, although this was mainly in chemicals and consumer goods.

One economist, Vicky Redwood at Capital Economics, blamed the bad performance on the serious and continuing debt problems among countries using the euro. She said: "September's trade figures suggest that the UK is already suffering the adverse effects of the eurozone crisis."

The data puts a question mark over Chancellor George Osborne's stated aim of having the private sector drive forward any UK recovery using exports.

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