Trade gap widens locally too
REGIONAL trade figures due to be published today were expected to echo an unexpected national plunge in exports.
Office for National Statistics data, released on Tuesday, showed Britain’s exports had fallen to the lowest levels in more than three years during January, despite a weak pound..
Exports fell by £1.4bn, or 6.9%, to £19.5bn compared with December in the largest month-on-month fall since July 2006.
Commentators said it was likely that snow-bound manufacturers had struggled to get their goods to ports, while Government critics seized on the figures as a damning indictment of manufacturing policies. Exports to the US were the biggest casualty over the month, with a £500m slide.
The overall decline far outstripped a 1.6% decline in imports - leaving the UK’s goods trade gap with the rest of the world widening from £7nn to £8bn in January.
This is the biggest trade gap since August 2008 and undermined hopes that a weaker pound would boost exports and help re-balance the economy. Government ministers have been calling on manufacturers to seize the opportunity presented by export markets.
The figures triggered more pressure on the pound and raised further doubts on Britain’s ability to maintain its triple A credit rating.
