Highlights
The trade deficit unexpectedly widened out by nearly Stg0.5B to Stg7.3B in December. The worsening was due to a 5.2 percent monthly jump in imports that more than offset an otherwise very respectable 4.5 percent gain in exports.

The core trade deficit increased rather more sharply, up Stg0.8B to Stg6.9B.

Regionally, the year-end deterioration reflected a worsening in net exports to the non-EU bloc where the bilateral red ink increased from Stg3.1B to Stg3.6B. The overall trade position with the EU was essentially unchanged and in the red to the tune of Stg3.7B.

Despite the December deterioration, the calendar year shortfall narrowed to Stg81.9B from Stg93.4B in 2008. Even so, the decline here was due to sharp contractions in both sides of the balance sheet with nominal exports down a record 9.5 percent and imports 10.3 percent, their largest fall since 1952. Within these figures, capital goods exports dropped Stg4.1B, intermediates were off Stg1.8B and consumer goods excluding cars dropped Stg703m. Exports of cars declined Stg3.4B.

The slide in the value of the Pound since 2008 should benefit exporters in 2010, particularly those selling to the EU. However, the trade deficit is likely to remain sizeable throughout the year and, as such, should remain a constant threat to the exchange rate.

2010 Release Schedule

Released On: 1/12 2/9 3/9 4/13 5/13 6/9 7/9 8/10 9/9 10/12 11/9 12/9 Released For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct