UK Oct global trade deficit widens as imports hit record high
[yep that will hurt the british pound. mish]
Thursday, December 9, 2004 10:07:02 AM
afxpress.com
(updating to add analyst comment and sterling reaction)
LONDON (AFX) - The UK's trade position with rest of the world worsened in October, with the deficit hitting its highest level since January in an indication that the final quarter of the year started on a weak note, according to official figures released today. The deterioration came as imports of goods in October reached a record 21.517 bln stg -- the highest level since the series began in 1697
At the same time, exports fell some 2.0 pct from September to 16.217 bln stg
As a result, the global trade in goods deficit for October widened to 5.3 bln stg from a downwardly revised 4.44 bln stg the previous month
Analysts polled by AFX News had expected a more modest widening to 4.8 bln stg. The pound moved back below the 1.92 usd mark on the news, while the euro edged back up 0.68 usd
"The data suggests a weak entry point into the fourth quarter," said Mark Miller, economist at HBOS
Record oil prices during the month appear to have hurt take up of UK exports abroad but since oil prices have eased a little the trade position may be expected to improve in the coming months, he added
Still, National Statistics said 2004 is on course to record the UK's biggest trade deficit ever
Trade in oil, however, improved significantly to record a surplus of 203 mln stg in October from the first deficit in 13 years seen in September. Elsewhere, the UK's trade in services surplus narrowed to 1.475 bln stg from 1.515 bln stg in September, taking the overall trade deficit to 3.825 bln stg - the widest level since January. The UK's trade in goods with non-EU countries also widened, reaching 2.939 bln stg from 2.383 bln in September
Once again, the latest figure is wider than market expectations. Analysts polled by AFX News had predicted a 2.6 bln stg deficit
In the three months to October, the deficit in trade in goods and services totalled 10.444 bln stg, up from 10.373 in the third quarter of 2004
The trade in goods deficit in the three months to October meanwhile rose to a record a deficit of 14.929 bln stg from 14.837 in the preceding 3 month period |
