Good News as Trade Gap falls to smallest since 2003
The UK’s deficit on seasonally adjusted trade in goods and services fell to £1.1bn in December.
The Office for National Statistics (ONS) said that should be compared with the deficit of £2.8bn in November.
Britain’s trade gap is now the smallest since April 2003, when the deficit in trade in goods and services then was £0.9bn.
Meanwhile, industrial output recovered more than forecast in December, easing fears the UK is heading for more negative growth.
Industrial production, which accounts for around 15% the economy, grew by 0.5% on the month, against forecasts for a 0.2% rise.
Lee Hopley, chief economist at EEF, the manufacturers’ organisation, said both figures were encouraging: “December’s production figures show the fourth quarter wasn’t a complete write-off, with the strong rebound in manufacturing output hopefully providing a solid platform for continued recovery in the first quarter.
“Overall goods exports reached a record level at the end of last year, making some headway into the overall trade deficit and pointing to encouraging signs of rebalancing across the economy.”
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