UK trade deficit widens unexpectedly as exports fall despite pound drop

Last Updated: November 10, 2016By
In the third quarter overall, the trade in goods deficit narrowed by £1.5bn on the second quarter [Image: Andrew Matthews/PA].

In the third quarter overall, the trade in goods deficit narrowed by £1.5bn on the second quarter [Image: Andrew Matthews/PA].

It means that, once again, the UK is losing money – and this time in a situation where we should be doing much better.

The fall in the value of the pound means it is cheaper for people in foreign countries to buy UK-made goods. But they aren’t doing that.

It means less money to spend and less money to invest – not that the UK government has been doing much of that lately, in any case.

Yet another Tory disaster.

Britain’s trade deficit with the rest of the world widened unexpectedly in September as the sharp fall in the pound since the Brexit vote failed to boost exports.

The UK trade in goods deficit increased by £1.6bn over the month to £12.7bn. Imports rose £1.3bn to £38.8bn, while exports fell by £200m to £26.1bn. Imports of ships, materials, vehicles and oil were all up in September, the Office for National Statistics said.

The disappointing figures suggested the 16% fall in the value of the pound since the EU referendum in June failed to lift exports, despite making British goods cheaper abroad.

Source: UK trade deficit widens unexpectedly as exports fall despite pound drop | Business | The Guardian

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No Comments

  1. Joan Edington November 10, 2016 at 8:26 am - Reply

    The bit that jumps out at me from these figures is the fact that a major contributor to the rise in the deficit is the import of ships. Clydeside and many other shipbuilding areas of the UK have been systematically destroyed by Tory governments. So many people out of work and communities split up, just so we can import ships from abroad?

    • Mike Sivier November 10, 2016 at 11:35 am - Reply

      I would say this was part of the Tory plan to destroy the industrial base of the UK, in order to impoverish working-class people who, they decided, had become too confident by the 1970s.

  2. Barry Davies November 10, 2016 at 10:09 am - Reply

    Of course this does not take into consideration that the drop has not taken us below the balance prior to brexit, as our exports had gone up by more than this blip which wouldn’t have been mentioned wherein not for the remainers still trying to prove their predictions were right.

    • Mike Sivier November 10, 2016 at 11:33 am - Reply

      The trade deficit has increased from an already-existing deficit. At no point was it a surplus.

  3. Dave Rowlands November 10, 2016 at 2:41 pm - Reply

    I’m flabbergasted that we still actually make products that the rest of the world want to buy.

    • Mike Sivier November 10, 2016 at 3:31 pm - Reply

      In fairness, our creative industries are hugely talented.

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