UK goods trade deficit widens beyond expectations in June

The UK's goods trade deficit widened more than expected in June as exports fell markedly faster than imports, official data showed Thursday.

The goods trade gap increased by £1.9 billion ($2.6 billion) from the previous month to £21 billion ($28.3 billion), according to the Office for National Statistics (ONS).

The figure exceeded market expectations for a deficit of £20.6 billion ($27.8 billion).

Goods exports decreased by £2.2 billion, or 6.3%, month-on-month to £33 billion. Exports to the EU fell 7.4% to £15.9 billion, while shipments to non-EU countries declined 5.4% to £17.1 billion.

The decline in EU exports reflected lower shipments of fuels, chemicals, machinery, and transport equipment.

Exports to non-EU countries were dragged down mainly by weaker car shipments to China and lower sales of mechanical power generators to the United Arab Emirates.

Goods imports slipped by £400 million, or 0.7%, to £54 billion. Imports from the EU edged down 0.3% to £28.4 billion, while those from non-EU countries fell 1% to £25.6 billion.

After removing the effects of inflation, goods imports rose 1.1%, while exports declined 4.7% in June.

In the second quarter, the UK's overall goods and services trade deficit widened by £300 million from the previous quarter to £8 billion.

The goods deficit increased by £1.2 billion to £60.7 billion, while the services surplus grew by about £900 million to £52.7 billion.