Trade data is out today from ONS, as always the monthly numbers can be volatile so always best to view with a cautious eye, but some continuing positive news to go with the other indicators we have seen recently.
In June, the overall trade deficit shrank by £1.1bn from May, to reach £1.5bn. Looking specifically at goods, exports reached a record high of £26.9bn in the month, an increase of £1.3 billion from May. This increase came from non-EU exports, with exports to the EU remaining static, and exports of goods to countries outside of the EU rising to £14.2 billion from £12.9bn in the previous month.
Looking at the second quarter figures, the deficit on trade in goods reduced to £24.9 billion from £26.5 billion in Q1 2013. Exports of goods in Q2 reached the highest on record at £78.4 billion.
For non-EU countries, exports of goods increased by 7.5% in the second quarter, and reached over £40bn for the first time. UK trade in goods with the US usually runs at a surplus and this was also at a record high in Q2 with exports increasing by 3.3% and imports decreasing by 1.3%. Exports to the EU increased by 2.3%.
In summary, all indicators are going in the right direction – deficits going down and all but one goods export indicators up…