UK trade deficit widens on higher oil imports, larger trade gap with Germany
LONDON—The gap between how much the U.K. buys abroad and what it exports widened in September, driven mainly by a rise in oil imports and a larger trade deficit with Germany, according to official figures released Friday.
The trade deficit for goods rose to £9.8 billion ($15.5 billion) during the month, the Office for National Statistics said. This was up from £9 billion in August, as Britain exported 4.2% more goods to the rest of the world but increased imports by a larger 5.8%. The deficit is, however, lower than the £10.1 billion registered in September 2013.
As the U.K. runs a surplus in services, the global trade balance, which includes both goods and services, registered a smaller deficit—£2.8 billion in September and £1.8 billion in August.
The biggest contributor to the rise in imports in the year to September was an increase in oil purchases—mainly from non-European Union countries, the ONS said.
Economic weakness in the eurozone and a strong pound have also hurt British exports during the third quarter. The trade deficit in goods with Germany—Britain’s main trading partner—has gradually increased to be the largest ever recorded in the third quarter, the ONS said.
